The government has decided to discontinue the Gold Monetisation Scheme (GMS) starting from Wednesday in view of the evolving market conditions, the finance ministry said. However, the banks may continue their short term gold deposit schemes (1-3 years), the ministry said in the statement on Tuesday. Till November 2024, approximately 31,164 kilograms of gold have been mobilised under GMS.
Leading Indian jewellery bodies, including the All India Gem & Jewellery Domestic Council (GJC) and Malabar Gold & Diamonds, have expressed support for Prime Minister Narendra Modi's appeal to reduce gold imports and are advocating for enhancements to the Gold Monetisation Scheme (GMS) to unlock India's vast idle gold reserves.
Banks and friendly neighbourhood jewellers can serve as good channels to provide liquidity for gold deposits with built-in incentives for them, suggests Harsh Roongta.
There are 350,000 jewellers, of which 13,000 are BIS-certified.
People can deposit idle gold with authorised agencies and take advantage of the price escalation of gold as well as earn interest on the deposit.
Gold loans can be released online or by bank transfers.
Banks can also allow the depositors to deposit their gold directly with the refiners.
India imported 967 tonnes of gold in 2014-15.
A workshop has been organised in Mumbai to come up with suggestions.
Only 21 tonnes of gold have been mobilised in the last eight years under the gold monetisation scheme (GMS) which was announced by the Government of India in November 2015. This could be considered as a failure as the scheme has undergone several changes with a revamped GMS announced in April 2021 to improve collections. This figure was released by the World Gold Council (WGC) on Wednesday in its report titled 'Gold Investment Market and Financialisation, in India gold market series'.
The government has refuted rumours of a monetisation scheme for gold held by temple trusts and religious institutions, clarifying that such claims are false and misleading.
The scheme calls for banks, refineries and hallmarking centres to work together.
Gold monetisation scheme will help unlock value of gold.
The scheme is yet to take off.
Only three or four tonnes is estimated to have been mobilised under the scheme.
Jewellers in Lucknow protest Prime Minister Modi's appeal to defer gold purchases for a year amid the West Asia crisis, fearing significant business losses and economic hardship for those involved in the trade.
The Bureau of Indian Standards has certified 33 hallmarking centres in the country to act as collection and purity testing centres for the gold monetisation scheme.
'What exactly is on the prime minister's mind, we do not know. But it feels like the government wants the country to be prepared for unseen challenges ahead.'
Earning returns from an asset lying idle can be a good option in times of volatility.
The trust has around 35 kg of gold and will deposit the gold which is not in day-to-day use of the temple.
'Customers do not recover the original making charges paid on old jewellery. Sentimental value is lost when heirlooms are exchanged.'
Conversion into jewellery during redemption would entail 15-20% wastage and making charges, rendering the scheme inefficient
Insights from behavioural economics suggest that an ambitious nudge can be effective if three conditions are met, points out Ram Singh Insights from behavioural economics suggest that an ambitious nudge can be effective if three conditions are met, points out Ram Singh, director, Delhi School of Economics.
The Reserve Bank on Tuesday proposed greater flexibility to authorised persons to undertake foreign exchange transactions for hedging their exposures, balance sheet management and market-making, as well as to ease reporting obligations, after a review of the current regulations.
Govt should take steps to monetise real estate investment schemes.
For India to monetise gold, it is not the institutional depositor that policymakers must target but the average retail depositor.
Deposit certificates will also be exempt from capital gains tax.
Prime Minister Narendra Modi launched a scheme to tap a pool of over 20,000 tonnes of gold held by households and temples.
India has 20,000 tonnes of idle gold; gold is an important aspect of women empowerment: PM.
The richest Hindu temple in the world could soon come to the rescue of Prime Minister Narendra Modi's plan to recycle tonnes of idle gold and cut economy-hurting imports.
Banks in talks with temple trusts to push gold scheme
New gold schemes may perform better than previous plans: UBS.
Chirag Mehta, senior fund manager -- alternative investments at Quantum AMC, shares his views.
The RBI on Wednesday asked banks to provide an option to jewellery exporters and domestic manufacturers of gold jewellery to repay a part of Gold (metal) Loans (GML) in physical gold. As per the extant instructions, banks authorised to import gold and designated banks participating in Gold Monetisation Scheme, 2015 (GMS) can extend GML to jewellery exporters or domestic manufacturers of gold jewellery. GML are repaid in Indian rupees, equivalent to the value of the yellow metal borrowed.
Gold schemes are offering attractive returns to investors.
This may free up resources for productive or lending purposes.
The RBI has issued guidelines and the government has notified it.
The temples are concerned about the religious sentiments of the devotees who donate gold ornaments in the name of the deities
Look at gold bonds or gold monetisation scheme instead of buying physical gold
The government plans to borrow Rs 6 lakh crore in this financial year.
