Gold monetisation scheme is not working through banks and the government should rope in jewellers to make it successful, gold industry said today.
Word Gold Council (WGC) India Managing Director Somasundaram PR said, “I don’t think gold monetisation scheme is working. We have taken the Turkey model. The government should give some incentives to banks to make this scheme work.”
“I don’t see it is just a lip service…but hands are not there,” he said at the India International Gold Convention here.
Echoing his views, Ridding Sidhi Bullion Ltd Director Prithviraj Kothari said, “In a recent meeting with Finance Secretary, banks said they are not benefiting. They said it makes no sense to open a bank account for 30 grams of gold and get the gold tested.”
The scheme will not be successful if it is not implemented through jewellers, he said.
All India Gems and Jewellers Trade Federation Chairman G V Sreedhar said, “The scheme will be successful only through jewellers. If jewellers are included, they will put up a separate desk for this purpose and create awareness about the scheme.”
Today, most consumers do not know about the scheme and the government should relook at its implementation, he added.
Under the gold monetisation scheme, banks are authorised to collect gold for up to 15 years to auction them off or lend to jewellers from time to time.
Depositors earn up to 2.50 per cent interest per annum, a rate lower than savings bank deposits.
Currently, there are 46 assaying and hallmarking centres which are qualified to act as Collection and Purity Testing Centres (CPTC) for handling gold under the scheme.
All gold deposits under the scheme have to be made at CPTCs. Banks can also accept deposits at designated branches, especially from larger depositors.
As per industry sources, the gold mobilised under the scheme is less that 50 tonnes.