Only 400 grams have been deposited so far under the gold deposit scheme and the government has agreed to review the scheme and open more centres for gold testing and depositing in banks, says a report
The gold deposit scheme launched amid fanfare by Prime Minister Narendra Modi two weeks ago has so far attracted only 400 grams, says a report from Reuters quoting an industry official.
Quoting, Anil Sankhwal, the northern regional chairman of Gem and Jewellery Export Promotion Council (GJEPC), the reports says, a shortage of centres to assay the gold being put on deposit is a problem that the government has agreed to address.
After meeting with Finance Ministry officials, Sankhwal told reporters that only 400 grams have been deposited so far (under the gold deposit scheme) and the government has agreed to review the scheme and open more centres for gold testing and depositing in banks.
Indian households’ fascination for gold is as old as India’s history and has only grown over the years. As a result, gold jewellery has been used both as an asset and as a hedge against adverse circumstances. The household investment in physical asset had risen to 66.4% in FY12 from 49.6% in FY06, before declining to 58.7% in FY14. The households’ fascination for gold however did not diminish much. Their savings in the form of gold & silver ornaments had reached Rs37,267 crore in FY13 before declining somewhat to Rs33,427 crore in FY14.
The gold monetisation scheme is also a welcome step taken by the government to unlock the value of gold held by households or institutions and to reduce the dependence of Indian investors and gems and jewellery sector on imported gold. Also, it is an improvement over the existing gold deposit scheme 1999.