AHMEDABAD: The Centre's gold monetisation policy has been unsuccessful due to a lack of incentives to consumers and banks, and needed to be tweaked to make it popular, a research body of the IIM, Ahmedabad , said today.IIM's Indian Gold Policy Centre (IGPC) carried out a study on "Gold monetisation in India as a tranformative policy", and suggested changes to achieve its intended goal. "The gold monitisation policy, introduced by the Centre in 2015, had expected around 1,500 tonnes of gold coming in mainstream system. However, so far only around 200 tonnes of gold (including gold bonds) have come in mainstream. Process issues such as turnaround time and logistics requirements also deter banks and refiners from taking up the policy," he said. They are reluctant to part with gold, but in time of crisis they will go up to pledging gold.

Source: Economic Times January 30, 2017 15:00 UTC