New Delhi, August 4: The Union Government is understood to be examining a suggestion that it should utilise the present foreign exchange reserves for the purchase of gold in the international market and sell it in the rural areas as part of a concerted drive to mop up the savings from these areas.This novel suggestion is among a few others put forward by several economists for stepping up the mobilisation of savings to augment the resources for the Fifth Plan.It has also been suggested that there may be some difficulties for the Government itself to buy gold abroad, but the State Trading Corporation could be asked to buy the gold from the Trust Fund of the International Monetary Fund. It has further been suggested that part of the gold reserves available with the Reserve Bank of India could also be used for internal sales in the rural areas.The quarters from which the suggestion had been made are understood to have pointed out that the rural community, consisting predominantly of farmers, has yet to take to any sophisticated saving habit, whether in company shares or bank deposits, and are still very much drawn to gold. If gold is officially offered for sale, there is bound to be a big response these quarters expect. Published - August 05, 2026 03:01 am IST