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Revamped Gold Scheme Courts Jewellers
3 Jul
Summary
- Government eyes jewellers for revamped Gold Monetisation Scheme.
- Scheme aims to mobilize 30,000 tonnes of idle household gold.
- Revamped GMS expected to be announced by August, trade sources indicate.
The central government is contemplating a significant overhaul of the Gold Monetisation Scheme (GMS), proposing to include jewellers in its operations. This strategic move aims to tap into the estimated 30,000 tonnes of gold lying idle with Indian households, thereby reducing the nation's dependence on imported bullion. This marks the first instance where the participation of jewellers is being actively sought to invigorate the scheme.
The proposal has reportedly gained traction following recent discussions involving senior ministers, the Reserve Bank of India, banks, and industry representatives. The revamp is anticipated to be announced in August, with industry executives noting the timing ahead of the festive season amidst rising gold prices and high import duties impacting jewellery demand.
Despite being in place for 11 years, the GMS has only managed to mobilize 39 tonnes of gold. The current Short-Term Bank Deposit option is the only remaining facility since March 2025, as medium and long-term deposit schemes were discontinued. The inclusion of jewellers is expected to leverage their consumer trust and retail networks.
Jewellers could act as collection points, testing, and aggregation centres, forwarding gold to refiners and banks. This role would provide them with a more accessible and lower-cost source of raw material, reducing reliance on imports. Consumer hesitation due to gold's perceived status as a store of wealth and the scheme's low interest rates have been cited as reasons for its limited success.
