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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Gold monetisation scheme: Discuss the need to improvement in gold monetisation scheme.
Jan 27, 2017 Related to : GS Paper- 3

Ans :

Introduction-

The current gold monetisation scheme seeks individuals and institutions to deposit with banks a minimum of 30 grams of gold for a minimum of one year to earn 1% or so interest. A depositor who opts for redemption of gold at maturity gets back physical gold in the form of bullion under short-term deposits, but medium- and long-term deposits are redeemed in rupees.

What is the issue-?

  • The scheme has not attracted too many people and got warm response from general public.
  • High quantity import of gold has huge impact on current account deficit of the country.
  • Import duty imposed on gold has made smuggling lucrative and pushed a part of the jewellery trade into the shadow economy.

What can be done-?

  • In the present scheme banks are dealing directly, instead banks should work with jewellers of repute, who act on their behalf. The jewellers could collect and recycle gold from those who have more gold than they care to use on a regular basis.
  • At maturity, the jeweller can return gold in the form of jewellery of the depositor’s choice, waiving or reducing the making charges. 
  • Because the prospect of getting one’s gold back in the form of jewellery, rather than as bullion or its equivalent rupee value, is likely to induce more people to part with their jewellery.
  • The contractual obligation of the bank with the depositor should remain as in the scheme at present, these being complemented with contractual obligations between the bank and the jeweller. 
  • Instead of importing large quantities of gold every year, India should use its existing stock of more than 20,000 tonnes of gold to meet jewellery demand in the country.

Conclusion-

The ongoing gold monetisation scheme has got tepid success. As huge quantity of gold being imported in the country has multi-fold impact in the economy. Hence there is an urgent need to bring changes in the ongoing scheme and need to involve private jewellers so that the stock gold in the country can be utilised effectively. 


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