100-Word Take| Government may have finally struck gold with Gold Monetisation Scheme

Since its launch in November 2015, the government has made repeated changes in the Gold Monetisation Scheme to make it attractive for Indians to move from buying physical gold to hold it in electronic form. The response, however, fell far short of expectations.

The government has now decided to attract gold deposits in bulk held by charitable institutions and various government entities.

This is a sensible idea as donations to charitable institutions, especially temples in the form of gold, is common. It’s a win-win for both as temples will earn a tax-free dividend on their hoard while the government gets the gold it needs.