India sitting on $5 trillion worth of gold: Will the govt tap it with a new scheme?

A Gold Monetisation Scheme allow individuals, Hindu Undivided Families and trusts deposit idle physical gold with designated commercial banks which can generate interest for the depositors. It turns a dead asset into income generating financial tool.

Kolkata: India is believed to be sitting on gold worth $5 trillion, which is far higher than the country’s GDP, and the government is planning to revamp its flagship Gold Monetisation Scheme to turn this idle asset into a financial instrument, says reports. The plan comes against the backdrop of surging crude oil prices, thanks to the continuing West Asia crisis, which is putting a lot of stress on the rupee and the stress is only rising due to gold imports. Reports state that such a monetisation scheme can be announced later in August and it will rope in jewelers for the first time to ensure this vast amount of yellow metal is rolled back into the jewellery production mill, which is the single biggest origin........

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