An official from a popular gold showroom in Chennai said, "We don't anticipate any dip in our business as south Indians see gold as a strong security." (Reuters photo)
Prime Minister Narendra Modi's
gold monetisation schemes have evoked mixed reactions in Tamil Nadu, where women like to wear gold jewellery and households see them as secure investments.
"Sentimentally we wouldn't be comfortable depositing our gold. It would be like pledging. Also the paltry 2.5 per cent interest is a disappointment. Even banks give higher returns," Shanthi a housewife in Chennai said.
A gold enthusiast, Jaya, said, "In Tamil Nadu we use gold as a status symbol. So we can't imagine buying gold bonds. We would want to wear our gold whenever there's an opportunity."
However Sathyabhama, a mother who was seen buying gold jewellery as a surprise Diwali gift to her daughter welcomed gold coins to be released by the government. "That's a useful scheme. We can buy as coins and make them into ornaments whenever required."
Gold stores are unperturbed. An official from a popular gold showroom in Chennai said, "We don't anticipate any dip in our business as south Indians see gold as a strong security."
On Thursday Prime Minister Modi announced three gold schemes: gold deposit, gold bonds and gold coins in a bid to reduce gold imports. India, he said, has around 20,000 tonnes of gold lying idle at homes and temples which could be used for the country's development.