As a part of Gold policy immediately after independence there have been various restrictions on the import of gold as the policy makers wanted to save precious foreign exchange for the import of essential commodities which were necessary for the economic development. Before 1992 there was a ban on the import of gold under Gold Control Act 1968 and it is only after 1992 import of gold became liberalized. In liberalized era companies like MMTC, STC and other few banks were authorized by the RBI to import gold. Gold has assumed importance since olden days of civilization. The basic foundation of mercantilism school of thought was that accumulation of precious stone, gems and bullion like gold, silver etc. makes a nation stronger. Bullion was considered to be the capital of the economy instead of real capital formation. The gold has been very attractive asset especially in Indian society and culture.