Government Plans Gold Monetisation Scheme Through Local Jewellers
· Business · Indian Express, The Hindu
The Indian government is in discussions with jewellery industry leaders to launch a new gold monetisation scheme that allows citizens to deposit physical gold with local jewellers. Under the proposed model, depositors would earn interest on their holdings, with the gold value reflected in demat accounts similar to stock market investments. Industry experts estimate that over 20,000 tonnes of gold are currently held by Indian households, and monetising even 10% of this could unlock approximately $400 billion. The initiative aims to mobilise idle household gold to help reduce the country's reliance on imports and ease pressure on foreign exchange reserves. Official details remain under development as the government and industry bodies continue their consultations.
Why it matters
This scheme could significantly reduce India's import bill and improve the trade balance by bringing massive amounts of idle household gold into the formal financial system.
Read the original report — Indian Express
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.