GJC: In a landmark move to transform India’s massive private gold holdings into a productive financial powerhouse, the All India Gem and Jewellery Domestic Council (GJC) has proposed a digitally-enabled overhaul of the Gold Monetisation Scheme (GMS). GJC has been actively engaging with senior officials of the Reserve Bank of India (RBI) and the Ministry of Finance (MoF) to advance a comprehensive revamp of the Gold Monetisation Scheme (GMS).
By integrating local jewellers into a regulated, tech-driven framework, the council aims to help the government unlock billions in “idle” gold, reducing import dependency and strengthening the nation’s macroeconomic stability.
A Digital Leap for Physical Assets
The core of the GJC’s proposal is a formal transition toward a digital gold ecosystem. This framework, developed in consultation with the Reserve Bank of India (RBI) and the Ministry of Finance, seeks to solve the structural inefficiencies that have hindered the adoption of previous schemes.
- Dematerialisation: Physical gold (bullion, coins, and jewellery) would be converted into digital balances held within the banking system.
- Jeweller Integration: The model leverages the trust and reach of local jewellers to act as key facilitators in the formal financial system.
- Interest-Bearing Wealth: Traditionally non-yielding gold assets are transformed into interest-earning financial instruments without the owner needing to liquidate their holdings.
Transparency and Accountability
To address consumer and regulatory concerns, the GJC has anchored the revised framework on three pillars of governance:
- Full Transparency: End-to-end digital recording of every stage, from deposit and assaying to the final credit.
- Traceability: System-based tracking across the entire value chain, supported by verifiable audit trails.
- Accountability: Clear responsibilities for banks, refiners, and jewellers, backed by strict KYC compliance and regulatory oversight.
Economic Impact: Reducing the Import Burden
The GJC believes this revamped scheme is critical for India’s broader economic health.
- Market Formalisation: Shifting toward a regulated digital framework will improve compliance standards and market efficiency.
- Current Account Deficit (CAD): By mobilising domestic idle gold, the government can significantly reduce its reliance on expensive gold imports, which are a major drain on foreign exchange.
- Leveraging Investment Trends: With the recent surge in gold bullion and coin investments, the GJC sees a massive opportunity to bring these private holdings into the formal economy
Leadership Insight
“The proposed model integrates jewellers into a regulated, digital ecosystem, significantly enhancing transparency and trust for consumers. By unlocking the value of idle gold, we can strengthen domestic supply and reduce reliance on imports.” — Mr. Rajesh Rokde, Chairman of GJC
“The revamped GMS is designed to be practical and scalable. It creates a secure pathway for investors to earn returns on idle gold, transforming it into a productive financial instrument.” — Mr. Avinash Gupta, Vice Chairman of GJC
FAQ’s
1. What is the main proposal by GJC?
GJC has proposed a digital transformation of the Gold Monetisation Scheme, where physical gold like jewellery and coins can be converted into digital assets within the banking system, making it easier to manage, track, and earn returns on gold holdings.
2. How will the digital gold system work?
Under the proposed model, deposited gold will be converted into digital balances after proper valuation and verification. These balances will be maintained in bank accounts, ensuring transparency, traceability, and ease of transactions for investors.
3. What role will jewellers play in the new system?
Local jewellers will act as key facilitators, helping customers deposit gold, verify purity, and integrate them into the formal financial system, leveraging their existing trust and reach among consumers.
4. How does this benefit the Indian economy?
The scheme can reduce dependence on gold imports by mobilising idle domestic gold, improve market transparency, and help lower the current account deficit while strengthening overall economic stability.
5. Can investors earn returns under this scheme?
Yes, the revamped model allows investors to earn interest on their deposited gold, transforming traditionally non-yielding assets into income-generating financial instruments without selling their gold.
Gold Price Today Digital Media Network
Facebook Page (100K Followers)- https://www.facebook.com/Goldsilverpricetoday
Facebook group of (80K Jewellers Member – Sunar Jewellers Ekta – https://www.facebook.com/groups/goldsilverpricenews
Website (100000 Users)- https://goldpricetoday.co.in/
Instagram (46 K Followers)- https://www.instagram.com/goldpricetodaynews/
X- https://twitter.com/today_gold
Telegram Group (2000 Members)- https://telegram.me/goldsilverprice
Magazine (20000 Digital Subscribers): Gold Silver News For Magazine Subscription Contact +919111435279
Whatsapp News(25000 Members): +918448469588
