Synopsis

The government is exploring a revamped Gold Monetisation Scheme, aiming to involve jewellers for the first time to tap into the vast amount of household gold. This initiative seeks to reduce India's reliance on imported bullion, especially with gold prices and import duties impacting jewellery demand. Discussions involving ministers, the RBI, banks, and industry representatives are underway, with an announcement anticipated before the festive season.

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Kolkata: The Centre is considering a plan to allow jewellers to participate in a revamped version of the Gold Monetisation Scheme (GMS) to mobilise some of the nearly 30,000 tonnes of the precious metal lying idle with Indian households, said people with knowledge of the matter.

Part of the government's push to reduce India's dependence on imported gold, it will be the first time that the participation of jewellers is being sought. Getting them involved will help boost the appeal of the flagging scheme.

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The proposal has gathered momentum after a series of meetings among senior ministers and representatives of the Reserve Bank of India, banks and the industry over the past fortnight. It's being pushed ahead of the festive season as soaring gold prices and high import duty continue to weigh on jewellery demand, straining the country's import bill, industry executives said.

Trade sources said that the revamped GMS is expected to be announced in August. ET reported on May 12 that the bullion industry proposed several measures to the government to unlock idle household gold to address the widening balance of payments deficit.

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"The government is actively considering including jewellers in the scheme, as that will help bring out the idle gold from Indian households," said a senior gold trade executive who attended all the meetings.

The Centre is considering a plan to allow jewellers to participate in a revamped version of the Gold Monetisation Scheme (GMS) to mobilise some of the nearly 30,000 tonnes of the precious metal lying idle with Indian households, said people with knowledge of the matter.

Part of the government’s push to reduce India’s dependence on imported gold, it will be the first time that the participation of jewellers is being sought. Getting them involved will help boost the appeal of the flagging scheme.

The proposal has gathered momentum after a series of meetings among senior ministers and representatives of the Reserve Bank of India, banks and the industry over the past fortnight. It’s being pushed ahead of the festive season as soaring gold prices and high import duty continue to weigh on jewellery demand, straining the country’s import bill, industry executives said.

Trade sources said that the revamped GMS is expected to be announced in August. ET had reported on May 12 that the bullion industry had proposed several measures to the government to unlock idle household gold.

“The government is actively considering including jewellers in the scheme, as that will help bring out the idle gold from Indian households,” said a senior gold trade executive who attended all the meetings.