Gold offerings at temples have come under the scanner of the Reserve Bank of India. Deputy Governor K C Chakrabarty has called for a reduction in demand for gold as an offering to the deities.
"Ninety percent of the gold demand is jewellery or to offer to God. Both have to stop," said the official of the apex bank. The deputy Governor noted that Indian society's obsession with gold was an archaic idea of pre-historic times when India was a rich society of abundance.
"Wearing gold as an ornament was a culture when you were a rich society, when you were contributing to 30% of the GDP of the world. Today, we have become a poor country, we need to change our culture," he added.
For millions of Indian households which think otherwise, this assertion by Chakrabarty, may come as a shocker. Over the weekend, the deputy governor's remarks made at a function has opened up a Pandora's Box.
For centuries, Indian households have had a twin tradition - buying gold during festivities or on auspicious occasions largely in the form of jewellery, and offering gold to their Gods as a form of appeasement or in gratitude.
Both need to change, said Mr Chakrabarty, stressing on the need for a shift in people's social and cultural attitudes towards gold to cut its demand. This, he feels, will help ease the current account situation, especially "since investing in gold is non-productive".
If Mr Chakrabarty could have his way, he would have Indians donating only 2 carat gold instead of the regular 22 carats to temples. "Yes, if it is of religious value, it is the faith, (then) why do you require ornaments of 22 carats gold? Ultimately, ornament is ornament," he went on to add.
A poor country with so much gold, go figure.
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