Kerala is the first state in India which introduced a standard gold price based on the bank rate. A meeting between representatives of Malabar Gold and Diamonds, one of the largest gold and diamond retail chains in the nation, and important members of the All Kerala Gold and Silver Merchants Association, which determines the board rate for gold, resulted in the decision to introduce a uniform price on 916 purity 22 carat gold.
Malabar Group Chairman MP Ahammed commented on the development by saying, “We are extremely happy to be a part of this historic occasion. We want to express our gratitude to all Keralans who work in the jewellery industry for banding together to establish a uniform gold tariff for the entire state.
Kerala becomes first state to introduce uniform gold price based on bank rate https://t.co/A75vi3W5V5
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One India One Gold Rate policy
With the implementation of our “One India One Gold Rate” policy, Malabar Gold and Diamonds has paved the way by establishing a standard gold pricing throughout all of our locations in the nation. Kerala, which consumes the most gold in the nation, can provide the groundwork for a consistent gold pricing to be implemented across the entire nation. Additionally, MP Ahammed urged that the selling price of gold be uniform across the nation. Based on bank rates, the gold rate ought to be consistent throughout the nation. However, the majority of states charge an additional Rs 150–300 per gramme for gold beyond the bank rate. Gold used to be sold in Kerala at various prices on a given day. Consumers have an opportunity with a uniform gold price depending on bank rates.
Ahammed believes that there should be a system in place to establish the price of gold based on the country’s bank rate on a particular day. The gold bank rate, GST, and other taxes, such as import duty, are uniform throughout India. For instance, on November 4, 2022, the bank’s spot price for 916 (22 carat) gold was Rs. 1,640 per ounce, Rs. 3,50 for the bank premium, Rs. 6,67,467 for each kg of import charge, and Rs. 5,008 for each gramme of gold. When all of these factors are considered, the bank rate for 916 grammes of gold on November 4, 2022, comes to Rs. 4610. Jewelers in Kerala now charge the same price for gold as the bank rate as a result of price standardisation.