GJC engages with RBI, Fin Min on a regulated, digitally enabled GMS to improve adoption

All India Gem and Jewellery Domestic Council on Wednesday said it is in discussions with the Reserve Bank of India and the Finance Ministry to push for a comprehensive revamp of the Gold Monetisation Scheme, aimed at improving its adoption and overall effectiveness. GJC has submitted a refined, jeweller-integrated framework for GMS, developed through structured stakeholder consultations across the banking, refining, and jewellery sectors. The proposed model is designed to address existing structural inefficiencies and significantly enhance the scheme's adoption and effectiveness. ''GJC's continued engagement with RBI and the Finance Ministry reflects our commitment to building a robust and future-ready Gold Monetisation framework. The proposed model integrates jewellers into a regulated, digital ecosystem, significantly enhancing transparency, trust, and accessibility for consumers. By unlocking the value of idle gold, the scheme has the potential to strengthen domestic supply, reduce reliance on imports, and contribute meaningfully to India's macroeconomic stability,'' GJC chairman Rajesh Rokde said in a statement. A central feature of the proposal is the formal transition towards a digital gold ecosystem, whereby physical gold is converted into dematerialised gold balances held within the banking system through structured account mechanisms. ''The revamped GMS framework is designed to be practical, scalable, and fully aligned with regulatory expectations. It creates a secure and transparent pathway for gold monetisation, while ensuring accountability across all stakeholders.. ''Importantly, it enables investors to earn returns on idle gold, including bullion, coins, and jewellery - thereby transforming a traditionally non-yielding asset into a productive financial instrument. This will play a critical role in formalising the sector and improving overall market efficiency,'' GJC Vice Chairman Avinash Gupta said. The proposed framework is expected to improve gold mobilisation by leveraging the reach and trust of the jewellery trade. Enhanced mobilisation of idle gold can reduce dependence on imports, support domestic supply, and contribute to moderation of the Current Account Deficit (CAD), GJC added.

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