To be fair there is nothing wrong with the idea of seeking gold hoarded at homes or in bank lockers to be brought into the economy. It was an innovative idea which the government dared to test. Being the second largest buyers of gold, which accounts for more than 25 percent of India’s trade deficit, Indians have persisted in investing in an unproductive asset.
Largest private sector lender ICICI Bank said these schemes are an important step towards unlocking USD 800 billion of gold wealth and channelising it towards development.
"There are two schemes - Gold monetisation and Sovereign gold bond. We are working out the details. We have had our meetings with the Reserve Bank. Both the schemes will be launched in November," Economic Affairs Secretary Shaktikanta Das told reporters here.
With discretionary portion of consumer sentiment on an uptick, demand reviving and revival of government gold schemes, the prospect for business looks bright, said Prem Hinduja, CEO, Tribhovandas Bhimji Zaveri.