Kerala becomes 1st State to Introduce Uniform Gold Price Based on Bank Rate

Kerala becomes 1st State to Introduce Uniform Gold Price Based on Bank Rate: Kerala is the first Indian state to implement uniform gold prices based on the bank rate. The decision to implement a uniform price on 916 purity 22-carat gold was made at a meeting between officials from Malabar Gold and Diamonds, one of the country’s largest gold and diamond retail chains, and key members of the All Kerala Gold and Silver Merchants Association, which sets the gold board rate. Kerala, as the country’s top gold-consuming state, has the potential to set the stage for a countrywide rollout of uniform gold prices.

What are the benefits of uniform gold price based on bank rate?

• A uniform gold price based on the bank rate allows consumers to purchase gold at a reasonable and transparent price.
• Jewellers in Kerala will now charge the same price for gold as the bank rate, thanks to price standardization.
• Standardised gold rates across the state will protect consumers’ interests and bring price transparency to the trade.
• With the ‘One India One Gold Rate’ policy, Malabar Gold and Diamonds has led the way by implementing uniform gold prices across all of their stores in the country.

What is Bank Rate?

The Bank Rate is the official interest rate at which the Reserve Bank of India will lend to the banking system, which includes commercial/cooperative banks, development banks, etc. When the RBI raises the bank rate, the cost of borrowing for banks rises, and credit volume falls, resulting in a decrease in the money supply. Thus, an increase in the Bank rate reflects the RBI’s tightening of monetary policy.

About Malabar Gold and Diamonds

Malabar Gold and Diamonds is a BIS-certified Indian jewellery company based in Kozhikode, Kerala. It was founded in 1993 by M. P. Ahammed. The company currently operates over 260 showrooms in ten countries, making it one of the world’s largest jewellery store chains.