# Let Indians spend gold to ease rupee problems

> India could use gold notes to stabilize rupee without RBI intervention.
- Title: Let Indians spend gold to ease rupee problems · mint
- Summary: India could use gold notes to stabilize rupee without RBI intervention. India could issue gold-backed notes to let citizens spend gold while keeping rupee…
- Keywords: indians, gold, rupee, rbi, goldbacks, swarnmudra, dhanteras, akshaya tritiya, news, india, Let, spend
- Source: mint — https://livemint.com/opinion/online-views/let-indians-spend-their-gold-to-help-ease-our-rupee-problems-heres-how-11792674046297.html
- Author: Sonali Garg,Robert E.Wright
- Published: 2026-10-25T12:31:04+00:00
- Read time: 1 min
- Topics: indians, gold, rupee, rbi, goldbacks, swarnmudra, dhanteras, akshaya tritiya, news, india
## Gold hoarding in India
Indians buy gold on Akshaya Tritiya, Dhanteras and Diwali.
## Gold reserves vs RBI
Families and temples keep about 25,000 tonnes of gold, 28 times RBI's reserves.
## Government response
Prime Minister Modi asked Indians to postpone gold purchases for a year in May 2026.
## Goldback solution
Goldbacks are notes with 31 milligrams of 24 carat gold, accepted by 5,000 US businesses.
## Swarnmudra concept
Swarnmudra would be 8 milligrams of gold worth about ₹109, buy ₹100 vegetables with one.
## Legal changes needed
Parliament could exempt swarnmudras from Section 14 of Coinage Act 2011 and tax law could treat spending as money.
## Gold standard benefits
Swarnmudras would let India enjoy gold standard without RBI buying gold or pegging rupee.
## Why gold is valuable
Gold jewellery has sentimental value, melting it is anathema to families.
## Goldbacks vs swarnmudra
Goldbacks sell for twice gold value, premium pays for durability and anti-fraud features.
## Key takeaway

India could issue gold-backed notes to let citizens spend gold while keeping rupee stable.