Bhubaneswar: The Central Government is reportedly preparing a major renewed push for gold monetisation aimed at reducing India’s heavy dependence on gold imports and mobilising idle household gold reserves into the formal economy.
Under the proposed initiative, citizens may soon be able to deposit gold with banks and earn interest on their holdings, with banks expected to accept deposits starting from as little as 10 grams.
Officials believe the move could significantly reduce pressure on India’s foreign exchange reserves and lower import dependence if large quantities of household gold are brought into the banking system.
According to estimates, Indian households collectively hold nearly 30,000 tonnes of gold, making India one of the world’s largest private holders of the precious metal. Government assessments suggest that if even 2,000 tonnes of gold are deposited under monetisation schemes, the country may not need to import gold for nearly three years.
The deposited gold is expected to be refined and made available to jewellers and manufacturers, helping meet domestic demand through recycled supply rather than imports.
India currently imports more than 700 tonnes of gold annually, contributing significantly to the country’s import bill and current account pressures.
The proposed expansion of the gold monetisation framework is being viewed as part of broader efforts to unlock dormant household wealth, strengthen domestic resource utilisation and improve economic resilience amid global financial uncertainties.
