Revamped Gold Scheme: Minimum deposit cut to 10 gm, jewellers roped in

Kolkata: The federal government on Wednesday launched a revamped Gold Monetisation Scheme that seeks to unlock an estimated 22,000 tonnes of idle gold mendacity at Indian households by decreasing minimal deposit to 10 grams, involving jewellers, and making all state-run banks take part in it.

At the very least one third of the general public sector financial institution branches in all cities should present the revamped gold deposit scheme on demand with particular designated officers, and the minimal deposit beneath the scheme has now been diminished to 10 grams from earlier 30 grams, finance ministry mentioned in a notification.

The federal government may also request the personal sector banks to take part within the revamped Gold Monetisation Scheme (GMS) that can incentivise taking part jewellers.

In line with the revamped GMS, within the first stage, challenge of medium-term gold deposit (MTGD) and long-term gold deposit (LTGD) certificates by banks shall be moved to a safe digital platform, to be developed by State Financial institution of India. Thereafter, a regulated securities depository shall be designated by SBI to carry the certificates in a digital demat format.

GMS safety shall be tradable in market.

Jewellers shall be inspired to arrange BIS-approved assortment and purity testing centres (CPTCs) beneath the scheme. Collaborating banks and refineries will take steps to enter into settlement with enough variety of CPTCs in order that GMS could be provided in considerably bigger variety of branches.

Banks have additionally been permitted to purchase Indian-refined gold from market and gold alternate beneath the scheme.

All these modifications are anticipated to revive GMS that has remained a non-starter since its introduction in November 2015.

Mobilising a lot of the idle gold from Indian households will assist the nation scale back dependence on import of gold and handle the problem of present account deficit.

“The revamped gold monetisation scheme will convey pathbreaking modifications within the bullion and jewelry sector with the introduction of GMS safety, reimbursement of GML when it comes to Indian refined gold, permitting banks to purchase Indian gold by way of exchanges, ease of GML mortgage, and discount of minimal deposit to 10 grams from present 30 grams,” mentioned Surendra Mehta, nationwide secretary, India Bullion & Jewellers Affiliation.

He mentioned together with jewellers in GMS is a significant transfer as Indian households belief their household jewellers and subsequently mobilisation of idle gold mendacity within the lockers will grow to be comparatively simpler. “The involvement of jewellers to run GMS scheme shall make the whole scheme consumer-friendly and can profit jewellers in huge manner,” Mehta mentioned.