Gold monetisation scheme mobilises over 1.5 tonnes

Plans to tap 20k tonnes of idle gold

The government has collected more than 1.5 tonnes of temple gold under the Gold Monetisation Scheme (GMS), which is in force for a little over six months. The government plans to tap an estimated 20,000 tonnes of gold lying idle with households, temples and trusts in India.

“GMS was launched on November 5 and it is too early to make an assessment of the impact of the scheme on the imports of gold,” Minister of State for Finance, Jayant Sinha, informed the Lok Sabha on Friday in a written reply. He said that India mobilised 1,512 kg gold under the scheme.

He said there was a considerable reduction in the quantum of gold imports during the last six months, as compared with gold imports during 2014-15.

The gold monetisation scheme is aimed at reducing demand for gold in its physical form and pulling it out into the financial system for productive use.

The scheme provides for depositing gold in any form with banks for a period of one to 15 years that will earn interest while redemption will be at the prevailing value at the end of the tenure.

Under the monetisation scheme, banks are allowed to sell gold deposited with them to jewellers to boost domestic supply and cut reliance on imports.