The need for regional service customization in the gold finance industry

Abstract

Gold has a specific role in India's socioeconomic environment. Particularly in rural communities, it is viewed as a valuable asset, a hedge against inflation, and an immediate source of cash. India's households Gold is utilized as a kind of collateral to get funds for immediate requirements. As a result of their emotional relationship to their Gold, most households do not sell gold jewelry that is passed on from one generation to another, instead, they pawn it for immediate use. Indian households prefer Gold since it is a liquid asset to have, which can be very useful in times of crisis. In 2019, India accounted for 16% of world gold consumption. It is also one of the largest gold importers, resulting in a greater overall trade deficit. Indian households are thought to own approximately 35,000 tonnes of gold. Due to a lack of access to banks in rural India, rural households have traditionally pawned gold with money lenders and pawnbrokers. The impoverished continue to put much of their money into gold. Powerful cultural processes are at work in India, making gold a coveted and necessary item. While it is true that growing gold demand exacerbates India's current account deficit, the fact that gold is the country's most valued asset cannot be forgotten. In addition to its emotional value, gold has become a vital part of Indian culture throughout the years, since it is utilised for a range of financial purposes such as savings, investment, and insurance. Gold loans are more than just a way to get money; they're also a way to help some of the world's poorest people improve their lives.