Saturday 3 January 2015

Modi Terms Gold Buying an Unproductive Investment

Terming gold buying and keeping it safely in bank as an unproductive investment, Prime Minister Narendra Modi urged people to invest their money in banks.

Speaking at the function to dedicate the ICICI Digital Village to the nation, Modi said Indians have a good habit of savings, but these savings have diverted to gold over the time as a measure of security and banks have a challenge to look into ways to discourage huge amounts of money being kept in gold.

“The challenge is not to rely on gold. People buy gold and they have that psychological feeling that gold is safe, secure and good for the future… the challenge for banks was to assure people that a bank account would ensure easy access to their savings whenever required,” Modi said.

Pitching for greater cashless banking transactions, Prime Minister also said this can be the best solution for the problem of black money. He said banks in India should compete for achieving maximum cashless transactions, as this would be the “best solution” to the problem of black money.

Gold imports have been a big strain on the country’s external finances with the current account deficit rising to 2.1 per cent of the GDP during the July-September period of 2014.


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