| Date: |
01-10-2015 |
| Subject: |
Gold Monetisation Scheme: Jewellers to approach RBI to request involvement |
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KOLKATA: Jewellers are eager to participate in the gold monetisation scheme that has been approved by the Centre recently to unlock an estimated 22,000-tonne of the precious metal lying idle in Indian households.
About 20,000 jewellers across the country are planning to approach the RBI to request it to involve them in the scheme, according to the All India Gems & Jewellery Federation.
The federation will make a presentation to the RBI shortly , said its newly-appointed chairman Sreedhar GV . "If idle gold enters the market then import of gold will come down thus helping keep the current account deficit under control," he said.
The current account deficit widened to $6.2 billion or 1.2 per cent of the gross domestic product in April-June from $1.3 billion or 0.2 per cent of GDP in the previous quarter, reflecting a worsening global economy as exports turned sluggish while foreign investments in India fell. But it was still lower than the $7.8-billion deficit or 1.6 per cent of GDP a year earlier.
"We strongly feel that jewellers should be involved in the gold monetisation scheme as the jewellers will be able to leverage their long-standing relations with consumers to unlock household gold," said Sreedhar.
Sreedhar said jewellers can play a major role in creating awareness about the scheme and con vincing people to deposit their gold. Jewellers will take a nominal fee from customers for carrying out the purity test and helping them open metal accounts with banks, he said.
He added customers should get 2.5-3 per cent interest on their gold deposits to make the scheme attractive. Ketan Shroff, spokesman of India Bullion and Jewellers' Association, said if the scheme is restricted to the hallmark agencies, then it will fail to achieve its goal to unlock idle gold. "The interest rate should be kept at 4 per cent.Jewellers and refiners will have to be involved in the scheme," he said. However, Shroff said the scheme is unlikely to be a success unless the government gives it a big push.
PR Somasundaram, MD of World Gold Council India said it is important to give the scheme time to stabilise under the new framework. "Banks and their customers should become familiar and comfortable with the new processes and these must be allowed to evolve based on initial feedback," he said. "In the longterm, the scheme will help monetise gold stocks held privately and put them to work for the Indian economy ."
Meanwhile, gold demand has not picked up in the country , contrary to the industry's expectations around Ganesh Chaturthi.Gold prices are currently hovering around Rs 26,300 per 10 gm.Shroff said a fall in prices to Rs 25,800 per 10 gm can trigger some demand.
Source : economictimes.indiatimes.com
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