Govt bats for holding gold in electronic form: Here are the details

Even as gold remains in the vault of service provider, transactions will take place digitally, says the proposal

The government is considering a proposal under which demat account holders will be able to carry out their gold transactions electronically.

According to the proposal, a demat account holder will have to open an account with a repository participant and through it, he/she can transfer gold to a jeweller’s demat account for the purpose of buying jewellery or even produce it as collateral for securing a loan.

Physical gold will remain in the vault of the service provider and the entire process of transfer will be digital.

The proposed move is part of the government’s plan to formalise the gold