Page 28 - Bullion World Issue 1 May 2021

Bullion World | Issue 01 | May 2021

Enabling all-India

customer-driven

deposits of small

holdings of gold

into GMS without

compromising the

principles that

govern the GMS, and

at no extra cost

PREAMBLE GMS deposits have yet to cross Mr Rajesh Khosla
Replacing the existing Gold 20 tonnes, mostly from Temples
/ Religious trusts who deposit
Deposit Scheme of 1999, direct at Banks. Despite a low Within existing parameters, GMS needed to be
GMS was launched in Oc- threshold of 30 gm gold on revamped into a value-chain user-friendly scheme
tober 2015 with the intent deposit, individual customer specifically targeting individual customer holdings. Since
to mobilize gold held by participation has been retail Customers transact gold (jewellery / coins / bars)
households & institutions in negligible. predominantly via jewellers. Integrating BIS licensed
the country and facilitate its jewellers into the GMS without compromising the
use for productive pur- The CPTC – Refinery – Bank principles that govern the GMS, and at no extra cost,
poses, and in the long run, multiple handling, time necessitated an in-depth review of the process flow to
to reduce country’s reliance consuming, risk enhancing reassure Government.
on import of gold. Deposits process is customer non-
of gold under GMS were to friendly; consumer outreach has
be made at Bank-approved been absent. The participants
CPTCs / Refineries and treated in the transaction value-chain
as an item in safe custody remained content to focus
held by the designated Bank. on their individual issues;
For larger depositors, Banks reaching out to, understanding
had the freedom to accept the and addressing concerns of
deposit of gold at their desig- the individual customer were
nated branches.
missing.

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