Strict processes followed for gold auctioning: Finance Minister Nirmala Sitharaman in LS
DMK MP Kanimozhi asks if it is taking any measures to prevent large-scale auctioning of gold, noting recent instances of this by NBFCs. She also asks why disbursal is capped at Rs. 20,000.
Pankaj Chaudhary, MoS for Finance, shares that in September 2024, the RBI instructed all organisations to keep an eye on their gold loan portfolios. He says that notices are given multiple times to bank account holders and then auction is done.
Union Finance Minister Nirmala Sitharaman shares that the auctioning is also done complying with strict processes.
Congress MP Manish Tewari asks if the shift away from the dollar to gold indicates a renewed search for an alternative international settlement mechanism de hors the dollar. Ms. Sitharaman says that the RBI has a basket of currencies and also buys gold. As far the alternative mechanism is concerned, there is not much for me to comment on, she says.