India's Gold Trade to Witness Sweeping Reforms

Also, the finance ministry plans to introduce a gold deposit scheme aimed at attracting tons of gold lying with Indian households and temple vaults.

SEATTLE (Scrap Monster): The Indian government is likely to introduce sweeping reforms in gold trade. As per report, the new government under Narendra Modi is likely to revamp the existing Gold Monetization Scheme (GMS) launched during its last tenure, in an attempt to make it more people-friendly. It must be noted that the scheme which was launched with much publicity and fanfare had failed to attract investor attention, being able to mobilize only around 18 tonnes of gold.

The government is keen on the proposal to form a Golf Council, which could act as a policy advisory body in framing rules to treat gold as an asset class. In addition, the government is likely to pass the Precious Metals Board of India Bill, which is expected to be introduced in Parliament after Cabinet approval. The bill will propose changes, which in turn would make online transaction necessary for purchase of more than 5 grams of gold in the spot market.

Also, the finance ministry plans to introduce a gold deposit scheme aimed at attracting tons of gold lying with Indian households and temple vaults. The proposed deposit scheme will allow gold in any form to be invested with the bank. In addition to earning returns on the deposits, the commodity will be returned to the investor on maturity of the deposit.

Above all, the government is likely to announce a series of measures, including setting up of a domestic council for gold in line with the Gems & Jewellery Export Promotion Council (GJEPC).

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