The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement:

"India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of gold each year. Though stocks of gold in India are estimated to be over 20,000 tonnes, most of this gold is neither traded, nor monetized. Keeping this in view, the government in Budget 2015-16 has announced the 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 jewellers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this gold".

Accordingly, a draft outline of the Scheme has been prepared. Comments and views are invited on the Draft Gold Monetization Scheme.

(The outline of the Gold Monetization Scheme placed below is only at the draft stage and is being placed here to obtain public opinion. The scheme as it stands at this stage, does not imply any commitment from the government)

Comments/suggestions are invited on the draft text which can be accessed through http://mygov.nic.in (External Website that opens in a new window) Portal.

Gold monetization scheme invites public consultation to replace existing deposit and metal loan regimes, enabling interest and loans. Invitation for comment on a draft Gold Monetization Scheme to replace existing Gold Deposit and Gold Metal Loan Schemes, proposing metal accounts where depositors earn interest, jewellers obtain loans in metal accounts, and banks/authorized dealers may monetize deposited gold; the outline is consultative and does not constitute government commitment, with comments invited via the designated portal.