Now Reading: Jewellers Propose 1% Incentive to Mobilise Household Gold
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Jewellers Propose 1% Incentive to Mobilise Household Gold
Indian jewellers could receive an incentive of 0.75% to 1% on old gold collected under a proposed revamp of the government’s Gold Monetisation Scheme. The proposal from the India Bullion and Jewellers…
The Story in Brief
Indian jewellers could receive an incentive of 0.75% to 1% on old gold collected under a proposed revamp of the government’s Gold Monetisation Scheme. The proposal from the India Bullion and Jewellers Association would make jewellers the customer-facing channel, while banks retain the deposits. IBJA president Prithviraj Kothari said the plan aims to draw on nearly 30,000 tonnes of gold held by Indian households and reduce import dependence. The final incentive and implementation date have not been decided. The scheme, launched in 2015, now offers only one to three-year short-term bank deposits, after longer-term options were discontinued in March 2025.
The Indian Opinion
The easy story is that a 1% payout will unlock India’s idle gold overnight. That overstates both the proposal and the incentive. Jewellers may promote the scheme, but customers still have to accept melting their ornaments and receiving rupee interest or gold equivalent at maturity. Banks’ weak earlier participation also points to an execution problem, not just a marketing gap. The real test is how many households deposit gold once the final rules, payout and redemption process are published.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
