Bullion banks would create 25,000 jobs: WGC

Chennai: Development of bullion banking in India has a potential to create 15,000 to 25,000 jobs, finds WGC.

Creation of bullion banks is one of the key recommendations made by the trade as part of the proposed framework of Gold Policy. WGC finds that bullion banking will increase bullion demand and in turn lead to significant job creation. It is estimated that higher manpower requirements at banks and collection and purity testing centres could create an additional 15,000-25,000 jobs.

While existing commercial banks can have separate bullion banking operations, new bullion banks can also be created.

Existing banks can leverage their commercial banking expertise in areas such as information technology, retail and corporate banking, sales and trading and compliance. These are highly people-centric areas, which will lead to job creation. Further, bullion banking has a market potential of around $300-500 million. Certain key products like gold metal loans, dore financing and brokerage and clearing services will dominate the market.