Former Reserve Bank of India Governor Y Venugopal Reddy revealed today that it was smugglers, who had helped the nation to get over from serious financial crisis in 1990.

Speaking at ongoing Hyderabad Literary Festival in Hyderabad on ‘Gold – Black, White and Yellow’, he recalled that gold was pledged in the international market to tide over Balance of Payments (BoP) crisis in 1990.

For which, he said that the Government of India had leased gold to SBI. How did the Government of India come into possession of gold? He said that most of the gold was confiscated from smugglers. So the smuggled gold, the confiscated gold came handy, he added.

He felt that it is the time for the Government to come out with a comprehensive gold policy, as it turned to be so important for the economy that so many people are dependent on it. Crores of rupees are traded in the market and so many consumers, so many are producers, and from the linkage it to financial sector is increasing, he added.

He felt that for the first time, the government started treating gold as a commodity in 2015-16. Launching of a gold scheme and making PAN number compulsory for purchases of gold jewellery worth more than Rs 2 lakh, he said shows the seriousness of Government in making the making gold a commodity.

He also reminded that gold jewellers were asked to provide PAN details of consumers who bought jewellery worth more than Rs 2 lakh so that it can be tracked. Recognition of gold as commodity or something is important that the public policy cannot ignore. These are signs of positive policy, he added.