GJC Seeks Major Overhaul of Gold Monetisation Scheme

Mumbai | Maharashtra —- India’s gold sector may soon witness a significant transformation as the Gem & Jewellery Domestic Council (GJC) intensifies its engagement with the Reserve Bank of India and the Ministry of Finance to revamp the Gold Monetisation Scheme (GMS). The industry body has proposed a jeweller-integrated, digitally driven framework aimed at unlocking the value of idle gold and strengthening India’s financial ecosystem.

The proposal, developed through consultations across banking, refining and jewellery sectors, seeks to address long-standing structural challenges that have limited the scheme’s adoption since its launch. The revamped model aligns fully with existing regulatory frameworks while introducing operational efficiencies and stronger stakeholder integration.

Transition Towards a Digital Gold Ecosystem

A key highlight of the proposal is the shift towards a digital gold ecosystem. Under the new framework, physical gold deposits would be converted into dematerialised gold balances held within the banking system. This approach aims to simplify participation while improving transparency and accessibility for consumers and investors.

The initiative comes at a time when demand for gold bullion and coins has surged, reflecting investor preference for gold as a reliable store of value. The revamped scheme intends to capitalise on this trend by allowing investors to monetise idle gold—including jewellery, coins and bullion—without selling their assets.

Transparency and Accountability at the Core

The proposed framework emphasises transparency, traceability and accountability. It includes end-to-end digital transaction records, system-based tracking across the gold value chain, and strict KYC compliance for all participants. These measures aim to create a secure and auditable gold monetisation ecosystem that builds trust among consumers and institutions.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, said, “The proposed model integrates jewellers into a regulated digital ecosystem, significantly enhancing transparency, trust and accessibility. Unlocking idle gold can reduce reliance on imports and contribute meaningfully to India’s macroeconomic stability.”

Avinash Gupta, Vice Chairman of GJC, added that the revamped framework is “practical, scalable and aligned with regulatory expectations,” and will transform gold into a productive financial asset.

Economic Impact and Future Outlook

If implemented, the new framework could significantly boost gold mobilisation, reduce import dependence and help moderate India’s current account deficit. It would also accelerate formalisation of the gold sector while improving market efficiency.

GJC has pledged to continue working closely with regulators to facilitate implementation, calling the initiative a crucial step toward building a transparent, regulated and digitally integrated gold ecosystem in India.