NEW DELHI: The government on Tuesday rejected speculation that it intends to bring gold from temples and households into the market, terming such claims as baseless and misleading. The Finance Ministry stated that it has no plans to monetise gold held by temple trusts or any religious institutions.
It also dismissed assertions that gold used in temple spires, doors, or other structures forms part of the country’s strategic gold reserves. “Such rumours are completely false, misleading and baseless,” the ministry said. It appealed to citizens not to believe or spread unverified information, warning that doing so creates unnecessary confusion and can mislead people.
The government urged people to trust only information released through authorised channels such as official press releases, government websites, and verified public communication platforms. The rumours gained traction after the government recently appealed to citizens to refrain from buying gold for one year.
Some social media posts suggested the government might sell temple gold, a claim the Finance Ministry has categorically denied. India’s official gold reserves with the government and the Reserve Bank of India stand at around 880 tonnes.
In contrast, estimates by various reports suggest that gold held in temples across the country could be between 3,000 and 4,000 tonnes, though there is no official government figure for this. This quantity is believed to exceed the official gold reserves of many countries.
Indian Jewellers Propose ‘Bullion Bank’ to Tap Idle Gold and Reduce Imports
The All India Jewellers & Goldsmith Federation (AIJGF) has urged the government to establish a regulated Bullion Bank to better utilise the large quantities of inactive gold held within the country.
India is among the world’s largest importers of gold, with billions of dollars spent annually on imports to meet domestic demand for jewellery, weddings and festivals. This puts significant strain on the country’s foreign exchange reserves.
In a proposal sent to Union Commerce Minister Piyush Goyal, the federation argued that instead of focusing solely on curbing demand, the government should activate the vast stocks of gold already present in Indian households, temples and Gold ETFs.
Under the proposed Bullion Bank model, individuals and institutions would be able to deposit their physical gold into the banking system. In return, depositors would receive interest or other financial benefits. Jewellers, refiners and exporters could then borrow this gold for their business needs, reducing dependence on fresh imports.
The AIJGF highlighted that a substantial amount of gold remains economically inactive across the country. Bringing even a portion of gold from temples and large investors into the formal financial system could turn it into a major economic resource, the federation said. The proposal also includes allowing Gold ETFs to lend a portion of their physical gold holdings in a controlled manner to enhance liquidity in the domestic market.
