GJC pitches a jeweller-led digital framework to monetise idle gold, improve transparency, and strengthen domestic supply through closer coordination with regulators
India’s apex jewellery industry body has proposed a comprehensive overhaul of the Gold Monetisation Scheme (GMS), centred on digital integration and deeper participation from jewellers, to bring idle household gold into the formal financial system.
The Gem and Jewellery Domestic Council of India (GJC) is engaging with the Reserve Bank of India and the Ministry of Finance to advance a restructured framework. The council has submitted a jeweller-integrated model developed through consultations with stakeholders across banking, refining and jewellery segments, seeking to address structural gaps in the existing scheme while improving scalability and adoption.
A central element of the proposal is the transition to a digital gold ecosystem. Under this approach, physical gold holdings—including jewellery, bullion and coins—would be converted into dematerialised balances and maintained within the banking system through structured account mechanisms. The framework is designed to align with regulatory norms while strengthening oversight and operational efficiency.
The proposal comes amid sustained growth in investment demand for gold, particularly in bullion and coins, reflecting a broader investor preference for the metal as a store of value. GJC said the revamped framework aims to channel this demand into formal monetisation avenues by enabling investors to monetise holdings without liquidation.
The scheme is structured to allow individuals to earn returns on idle gold assets by integrating them into formal financial channels, thereby converting non-yielding holdings traditionally into interest-bearing instruments and improving overall portfolio efficiency.
The proposed model also incorporates governance measures focused on transparency, traceability and accountability, including 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 mobilisation of idle gold could reduce reliance on imports, support domestic supply and contribute to moderating India’s current account deficit. The shift to a regulated digital gold framework is also expected to strengthen formalisation, enhance compliance standards and improve overall market efficiency.
Rajesh Rokde, Chairman, GJC, said, “ 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.”
GJC said it will continue to work with regulators and industry stakeholders to facilitate implementation and drive the transition towards a regulated, transparent and digitally integrated gold monetisation ecosystem.
