India gets gold moving

In 2015, the Indian government launched the Gold Monetisation Scheme (GMS), an initiative intended to mobilise gold held by households and institutions across the country. The movement of gold in the national market would benefit the Indian gems and jewellery sector — a major contributor to the country’s exports — and supplement the Reserve Bank of India’s gold reserves. It also helped the government reduce its cost of borrowing and the country’s dependency on gold imports.

Under the scheme, individuals can make deposits of their gold in a GMS account and earn interest on those deposits as the price of gold goes up. They can also choose to redeem their deposits in the form of physical gold or cash. The GMS is intended to reduce the country’s reliance on gold imports.

Learn more about the GMS at Paisa Bazaar, The Economic Times, and the Reserve Bank of India.