Gold monetisation scheme aims to treat gold as currency in India
By GCRU Gold News on Saturday, September 6 2014, 00:54 - Permalink
Gold should be treated as a currency, according to India's top gold refiner, MMTC-Pamp. The organisation is working on a gold metal account scheme that would help small retail gold consumers deposit their gold, melt and earn interest on it.
In a move aimed at mitigating the meagre gold supply situation across the country, which has led to a high current account deficit (CAD) and leading to high imports, the organisation has proposed a Gold Monetisation Scheme (GMS).
The scheme will ensure that gold deposits will be treated just as currency deposited in a bank and earn interest.
Explaining the gold scheme in Mumbai, Rajesh Khosla, Managing Director, MMTC-Pamp said the gold monetisation scheme would treat gold like currency.
He said it could also be looked at as a solution to get some of the 20,000 tonnes of gold lying idle with the local population.