A key pillar of the proposal is the transition to a digital gold ecosystem, wherein physical gold—across jewellery, bullion, and coins—is converted into dematerialized balances held within the banking system
Mumbai: The All India Gem and Jewellery Domestic Council (GJC) has stepped up engagement with the Reserve Bank of India and the Ministry of Finance to drive a comprehensive revamp of the Gold Monetization Scheme (GMS), centred on digital integration and jeweller participation.
The council has submitted a jeweller-integrated framework developed through consultations with stakeholders across banking, refining, and jewellery sectors. The proposed model seeks to address structural gaps in the existing scheme while enhancing scalability and adoption.
A key pillar of the proposal is the transition to a digital gold ecosystem, wherein physical gold—across jewellery, bullion, and coins—is converted into dematerializsed balances held within the banking system. This approach is designed to align with existing regulatory norms while introducing operational efficiencies and stronger institutional oversight.
The initiative comes amid sustained growth in investment demand for bullion and coins, which the revised framework aims to channel into formal monetization avenues. By enabling investors to earn returns on idle gold assets without liquidating holdings, the scheme seeks to transform non-yielding assets into productive financial instruments.
The framework is underpinned by governance principles centred on transparency, traceability and accountability. It proposes end-to-end digital transaction records, system-driven tracking across the value chain, and clearly defined stakeholder responsibilities supported by KYC compliance and audit mechanisms.
According to GJC, improved mobilization of idle gold through this model could reduce reliance on imports, support domestic supply, and contribute to moderating India’s current account deficit. The digital shift is also expected to strengthen formalization and compliance within the gold ecosystem.
Rajesh Rokde, Chairman, GJC, said, “GJC’s continued engagement with the Reserve Bank of India and the Ministry of Finance reflects our commitment to building a robust and future-ready gold monetization 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 macro-economic stability.”
Avinash Gupta, Vice Chairman, GJC, said, “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 monetization, 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 formalizing the sector and improving overall market efficiency.”
GJC said it will continue working with regulators to facilitate implementation, urging trade stakeholders to support the transition towards a regulated, transparent, and digitally integrated gold monetisation ecosystem.
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