India Broadens Gold Monetization Scheme to Encourage Surrenders

The Indian government is moving to widen a scheme designed to encourage individuals to surrender their gold holdings. The original program reportedly failed to meet its targets, prompting officials to revise the terms.

Details of the expanded plan remain under development, but the objective is to mobilize idle gold held by households and temples. Such schemes typically offer interest or other benefits in exchange for gold deposits, which are then refined and lent to jewellers or used to reduce imports.

A broader participation could increase domestic gold supply, potentially easing pressure on India's trade deficit and dampening local gold prices.