The government is considering changes to the Gold Monetisation Scheme, including a proposal that could require jewellers to participate in mobilising household gold deposits, according to The Indian Express. The move is aimed at bringing part of India’s privately held gold into the formal financial system.

Under the proposed framework, jewellers could play a role in accepting gold from customers and facilitating its conversion into deposits. The initiative is being examined as the government looks to increase the amount of domestic gold available within the financial system.

The proposal comes against the backdrop of India’s substantial household gold holdings. According to the report, even if 10% of privately held gold were monetised, it could create a significant pool of domestic gold for financial and economic use.

Jewellers Could Become Key Intermediaries

A greater role for jewellers could change how customers access the gold deposit programme, bringing the scheme closer to the retail jewellery ecosystem.

For jewellers, participation could create an additional service around gold mobilisation, customer relationships and recycling, while also requiring systems to handle deposits, documentation and compliance.

Scheme Could Support Domestic Gold Supply

The government’s broader objective is to reduce dependence on imported gold by encouraging the mobilisation of metal already held by households and institutions.  The proposal remains under consideration, and details of the operating structure, eligibility requirements and responsibilities of jewellers have yet to be finalised.

For the jewellery trade, the proposed changes will be closely watched for their potential impact on gold recycling, retail operations and domestic bullion availability.