I would, however, expect banks to be more proactive and innovative in developing new products for the non-resident Indians and ease the processes in timely transfer and credit of remitted funds. This is more critical from the point of view of banks in Kerala as the state is one of the largest recipients of remittances. 17.
In the present context of high CAD, I intend to highlight the concerns of rising import of gold. The three sources of demand for gold are consumption, investment and speculative. Reserve Bank has observed that while the growth in consumption demand, primarily driven by households, remained moderate, the demand for gold driven by investment and speculative motive has grown rapidly.