The Union government is preparing an update to the Gold Monetisation Scheme (GMS), aimed at bringing idle household gold into productive economic use. Sources indicate that the revised framework could be announced within the next two weeks.
A key change under consideration is expanding deposit points beyond banks. While deposits have so far been routed only through banks, the Centre is reportedly examining whether jewellery stores across the country can be designated as gold collection centres, making it easier for the public to participate.
Under the scheme, individuals deposit gold at government-authorised centres and earn interest. After the chosen tenure, the depositor can receive the value back either in gold or in cash, as per the scheme’s terms.
Once the revised scheme is implemented, deposits may be accepted at an authorised bank or an approved jewellery store. The gold’s purity would be tested, its weight recorded, and an account opened based on the assessed quantity, with interest paid for the duration of the deposit.
The scheme, launched in 2015, has reportedly mobilised only about 38 tonnes of gold over a decade. Public reluctance to part with traditional jewellery, tax-related concerns, limited interest from banks and higher costs to the government are cited as key reasons for the low uptake.
