history and current issue

GMS has been introduced by the Government to allow people to earn interest on the idle gold lying in their homes. Under the scheme, an individuals can evaluate their gold with a competent authority and use the valuation certificate to open a deposit account with a bank. Benefits of Gold Monetization Scheme Income addition Gold stored in-home or in a bank locker does not earn any benefits to the owners. By using gold for monetised deposits, an individual can earn interest from it and thus augment his/her income. This is particularly beneficial to rural economy. Reduce black money Most of the gold owned is usually through black money and thus large amount gets trapped in homes without benefitting anyone. By making this money reach the formal economy, it can be utilised in a better and productive way. Reduce Current Account Deficit Most of the gold in India is imported from abroad with high duty. This puts additional pressure on foreign reserves of India due to the high exchange rate with...