Gold Monetisation Scheme Receives Regulatory Overhaul with RBI, Finance Ministry Collaboration
Gold Monetisation Scheme Revamp Proposed by All India Gem and Jewellery Domestic Council
The All India Gem and Jewellery Domestic Council (GJC) has entered into discussions with the Reserve Bank of India (RBI) and the Finance Ministry to overhaul the Gold Monetisation Scheme (GMS). The aim of the proposed revamp is to enhance the scheme's adoption and effectiveness.
GJC has submitted a refined framework for GMS, developed through stakeholder consultations across the banking, refining, and jewellery sectors. The proposed model is designed to address existing structural inefficiencies and significantly improve the scheme's adoption and effectiveness.
The proposed framework integrates jewellers into a regulated, digital ecosystem, enhancing transparency, trust, and accessibility for consumers. By unlocking the value of idle gold, the scheme has the potential to strengthen domestic supply, reduce reliance on imports, and contribute to India's macroeconomic stability.
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Key Features of the Proposed Framework
| Feature | Description |
|---|---|
| Digital Gold Ecosystem | Conversion of physical gold into dematerialised gold balances held within the banking system through structured account mechanisms |
| Secure and Transparent Pathway | Ensures accountability across all stakeholders, enabling investors to earn returns on idle gold |
| Enhanced Gold Mobilisation | Leverages the reach and trust of the jewellery trade to improve gold mobilisation |
The proposed framework is expected to improve gold mobilisation, reduce dependence on imports, support domestic supply, and contribute to moderation of the Current Account Deficit (CAD).
GJC chairman Rajesh Rokde stated that the proposed model is designed to be practical, scalable, and fully aligned with regulatory expectations. Vice Chairman Avinash Gupta added that the revamped GMS framework enables investors to earn returns on idle gold, transforming a traditionally non-yielding asset into a productive financial instrument. This will play a critical role in formalising the sector and improving overall market efficiency.
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