RBI expands ambit of gold-monetisation scheme

Experts said this was likely to attract huge quantities of gold over the coming months. Some claimed this was a move to bring out unaccounted gold ahead of the Lok Sabha elections

RBI, RESERVE BANK OF INDIA, CENTRAL BANK

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Going by the events leading to the October board meeting and the proceedings of the last three meetings, it’s obvious that the government will not let loose the pressure to change the way the Indian central bank operates

Rajesh Bhayani Mumbai

Last Updated : Jan 10 2019 | 10:36 AM IST

The Reserve Bank of India (RBI) late on Wednesday liberalised the gold-monetisation scheme (GMS), allowing charitable institutions, the Centre, states, and government entities to deposit the precious metal.

Experts said this was likely to attract huge quantities of gold over the coming months. Some claimed this was a move to bring out unaccounted gold ahead of the Lok Sabha elections, slated in April-May.

Individuals, corporate entities, mutual funds, and exchange-traded funds were already allowed to deposit gold under the scheme launched by Prime Minister Narendra Modi on November 5, 2015. The aim of the scheme was to mobilise idle gold lying with