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The Union Cabinet will take up for approval in the next two weeks the much-awaited ‘Gold Monetisation Scheme’ (GMS) announced in this year’s budget.
GMS aims to get households and institutions to deposit gold with the government and earn interest on their metal accounts. It is also expected to provide a fillip to the country’s gems and jewellery sector by making gold available – as raw material – on loan from the banks. The scheme is seen as an attempt to reduce, over time, reliance on gold imports to meet domestic demand. A Cabinet note on GMS had be-en circulated, sources said.
However, there is still no clarity as to what interest rate will accrue under the GMS. This will most likely be discussed and decided at the level of the Cabinet, they added.
Also, the minimum quantity of gold that should be deposited to participate in the scheme is yet to be decided. While the draft GMS has called for setting the minimum quantity at 30g, there have been representations calling for pegging the level above that, and even below it.
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