In the Union Budget Speech of 2015-16, an announcement was made and it was proposed to introduce a Gold Monetization Scheme, which will replace both the present Gold Deposit and Gold Metal Loan Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewelers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this gold.

 Loan against gold for various agricultural purposes is a loan product where owner of the gold can avail loan against it. On the other hand, in Gold Monetization Scheme the owner will earn income on the deposited gold. As these are to diverse products, there seems no material impact on the existing loan against gold product of banks due to introduction of the Gold Monetization Scheme.

 This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha. 

Gold monetization scheme replacing prior deposit and metal loan schemes; enables income on deposited gold and metal loans. The Gold Monetization Scheme replaces the Gold Deposit and Gold Metal Loan Schemes, allowing owners to deposit gold and earn income on metal accounts, while permitting jewellers and banks to obtain loans in metal accounts and to monetise deposited gold; it is distinct from traditional loan against gold products and is not expected to materially affect those existing bank credit products.