Gold Monetization Schemes
The Union Cabinet on 09-September-2015 approved the introduction of Gold Monetization Schemes (GMS), as announced in the Union Budget 2015-16. The objective of introducing the modifications in the schemes is to make the existing schemes more effective and to broaden the ambit of the existing schemes from merely mobilizing gold held by households and institutions in the country to putting this gold into productive use. The long-term objective which is sought through this arrangement is to reduce the country's reliance on the import of gold to meet domestic demand. GMS would benefit the Indian gems and jewellery sector which is a major contributor to India's exports. In fiscal year 2014-15, gems and jewellery constituted 12 per cent of India's total exports and the value of gold items alone was more than $13 billion (provisional figures). The mobilized gold will also supplement RBI’s gold reserves and will help in reducing the government's borrowing...