This document discusses India's gold monetization scheme launched by the Reserve Bank of India. It aims to curb gold imports and reduce the current account deficit by enabling households and jewelers to deposit gold holdings in banks. Depositors can earn interest on gold deposits and take loans if needed. The scheme also intends to circulate India's estimated 20,000 tons of domestic gold by pulling it out of homes and lending it out. The document provides background on India being the second largest gold buyer globally and the rise and fall of gold prices in recent years. It outlines some advantages and disadvantages of the gold monetization scheme.

1. 138.3 8.2
5.6
7.2
8.5
8.3
4.5
4.5
6.1
6
6.3
4.5
5.5
5.9
124.8
136.1
153
159.5
188
114.5
150.7
123.5
152.6
183.3
144.7
150.8
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2012
2013
2014
2015
2011 26,400 31,799
26,481 26,710
26,820
2012
2013 2014
2015
Indiaisthesecondlargestbuyerofgoldacross
theglobe.Withconstantupsanddownsinthe
globaleconomy,goldpriceshaveseenthe
biggestfallsince2011.
TheRiseandFallofGold GoldDemandforJewelleryPicksUp
Goldisconsidered
anequivalentto
liquidcash
Goldisconsidered
asastatussymbol
Goldisavery
goodinvestment
Goldhasgreat
religious
significance
Goldhasgreat
ornamentalvalue
Goldhasgreatvalue
asheirloom
Conclusion
WhatistheGoldMonetisationScheme?
TheGoldMonetisationSchemelaunchedbytheRBIisanotherattempttocurbtheimport
demandsfromthecountryandthuscutthecurrentaccountdeficitsforIndia,asgoldimports
constituteasignificantchunk.Findouttheriseandfallofgold,andtheadvantagesand
disadvantagesoftheGoldMonetisationSchemebelow:
TheGoldMonetisationScheme,proposedinthisyear’sbudget,wouldenabledepositors,suchas
householdsandjewellerstoopenmetaldepositswithbanks,placetheirgoldholdingsinthem,
earninterestsonthegolddepositsandifneeded,borrowmoneyfromit.
Theschemealsointendstocirculatethestashedunproductivegoldintheeconomy,estimatedat
around20,000tons,bypullingitoutofdomesticsafesandlendingitout.
Introduction
Goldimportshavegrowninrecentmonths
Yearlygoldimports
1.8
20.7
FY09 FY10 FY11 FY12 FY13 FY14 FY15
28.8 40.7 56.5 53.8 28.7 34.4
2.2 3.1
1.8 2
3.8
4.2
9.8
1.3 1.6
2
5
3.1
APR MAY JUN JUL
2014 2015
AUG SEP OCT NOV DEC JAN FEB MAR APR
Advantages Disadvantages
ItwillbeinterestingtowatchoutforneweroffersbytheGovernmenttobringmoregoldintotheeconomy.
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