The government is working on a redesigned Gold Monetisation Scheme to encourage people to deposit unused gold with banks instead of storing it at home. The move is aimed at reducing India’s dependence on imported gold while making better use of the vast quantities already available within the country.
India imports a significant amount of gold every year to meet demand from jewellery buyers and investors. At the same time, households hold enormous stocks of gold that remain idle in lockers and homes. Policymakers believe bringing even a small portion of these holdings into circulation could reduce import costs and strengthen the economy.
The revamped scheme is expected to simplify the existing process and make participation easier for depositors. Authorities are also considering changes that would improve convenience and build greater public confidence in the programme.
The current Gold Monetisation Scheme allows people to deposit gold with authorised banks and receive returns on their holdings. The gold is then refined and supplied for productive use, helping reduce the need for fresh imports.
However, the earlier version of the scheme failed to attract large-scale participation. Many households were reluctant to part with inherited jewellery, while others found the process too complicated or were unaware of the benefits.
By addressing these concerns, the government hopes to encourage more people to unlock the value of idle gold. A stronger participation rate could lower import dependence, improve resource efficiency and reduce pressure on the country’s current account deficit.
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