As per the (Gold Fields Minerals Survey) GFMS Gold Survey in the third quarter of 2015 Review and Outlook Report, published by Thompson Reuters, India has surpassed China as the world’s largest gold consumer. According to the report, the consumption of gold in the first nine months of the year 2015 in India has been 642 tonnes whereas that in China has been 579 tonnes. A fall in the prices of gold in the recent months has been one of the reasons for the increased demand for gold in India.

The Government has recently launched a Gold Monetization Scheme (GMS), Sovereign Gold Bond (SGB) Scheme and Indian Gold Coin under gold monetization programme to reduce reliance n gold imports by encouraging households to monetize their gold. These three gold schemes were announced in the Union Budget 2015-16 and were accordingly launched on 5th November, 2015. The detailed guidelines of the Gold Monetization Scheme are available vide RBI’s Master Direction No. DBR.IBD.No.45/23.67.003/2015-16 dated October 22, 2015 which is available on RBI’s website. The detailed guidelines of the Sovereign Gold Bond Scheme is available vide Government of India’s Gazette Notification F.No. 4(19)-W&M/2014 dated October 30, 2015. The Indian Gold Coin is the country’s first national gold coin of 24 karat purity with 999 fineness which is minted indigenously. It has the Ashok Chakra engraved on one side and the face of Mahatma Gandhi on the other.

The Government receives representations from various organization and individuals with suggestions to improve the existing schemes. These are taken note of and necessary changes made from time to time based on the review of the schemes.

The Gold Monetization Scheme does not provide tax amnesty. As per the guidelines issued by the Government of Gold Monetization Scheme which are available on the website of the Ministry of Finance, tax exemptions, same as those available under the earlier Gold Deposit Scheme (GDS) would be made available to the customers, as applicable.

The objective of the Gold Monetization Scheme is to mobilize the gold held by households and institutions in the country to put this gold into productive use and in the long-run to reduce the current account deficit by reducing the country’s reliance on the imports of gold to meet the domestic demand.

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

Gold Monetization Scheme encourages household gold deposits to reduce import reliance and mobilize domestic gold for productive use. The Government launched the Gold Monetization Scheme, Sovereign Gold Bond Scheme and Indian Gold Coin to mobilize household and institutional gold, reduce reliance on gold imports, and put domestic gold into productive use; the Gold Monetization Scheme does not provide tax amnesty but offers tax exemptions comparable to the earlier Gold Deposit Scheme, and formal guidelines are issued by RBI and by Government Gazette notifications.