Kerala has become the First State in India to Introduce Uniform Gold Price Based on Bank Rate. The uniform gold price will first be applicable to the 916 purity 22-carat gold.

Important Points regarding Gold Price in India

• To those unaware, the Bank rate on gold, GST and other taxes including import duty is the same across India.
• But still, gold is sold at different rates across different states.
• It has been found that in most states, people are charged Rs. 150-300 extra per gram of gold over and above the notified bank rate.

Confusing? Let’s understand with an example!

• For example, on November 4, 2022, the bank spot rate of 22 carats of gold was Rs. 1,640 per ounce, the bank premium was Rs. 3.50, the import duty was Rs. 6,67,467 per kg and the bank cost per gram of gold was Rs. 5,008.
• Adding all these, the bank rate of November 4, 2022, amounts to Rs. 4610 per gram of gold.

Benefits

• Thanks to price standardization, gold consumers of Kerala will pay the same price as the notified bank rate for gold.

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