30/11/2015 9:34 AM IST | Updated 15/07/2016 8:25 AM IST

Finance Ministry To Review 'Slow Response' Of Gold Monetisation Scheme On 1 December

Bloomberg via Getty Images
Arun Jaitley, India's finance minister, speaks during an interview at his office in the North Block of the Central Secretariat building in New Delhi, India, on Monday, Nov. 2, 2015. Jaitley is open to meeting top opposition leaders, including Rahul Gandhi, to resolve a parliamentary deadlock over sales tax reforms. Photographer: Prashanth Vishwanathan/Bloomberg via Getty Images

NEW DELHI -- The Finance Ministry will hold a review meeting with banks and Resrve Bank of India (RBI) representatives on Tuesday to assess the gold monetisation scheme, which has seen a "slow response" since the launch earlier this month, so as to make it more attractive.

The meeting, to be chaired by Economic Affairs Secretary Shaktikanta Das, is also likely to be attended by RBI Deputy Governor H R Khan, an official said.

"Banks are now in talks with institutions and temples to popularise the gold monetisation scheme. The Economic Affairs department will review the progress on 1 December," the official added.

The scheme, launched by Prime Minister Narendra Modi on 5 November, has received a "slow response", according to the ministry.

Out of the 20,000 tonnes of gold worth over Rs 52 lakh crore lying idle with households and institutions, the scheme has been able to garner only 400 gm of physical gold till 18 November.

The scheme is aimed at reducing the country's reliance on the gold imports to meet the domestic demand.

The ministry has recently fine-tuned the scheme to get better response from those holding stocks of gold.

It has allowed depositors to give their gold directly to the refiner without involving the collection and purity testing centres wherever it is acceptable to the banks.

"This will encourage the bulk depositors like Hindu Undivided Family (HUFs) and institutions to participate in the scheme," the ministry had said.

It had already met the representatives of the gems and jewellery industry associations to seek their views on making the monetisation scheme attractive.

Following that, the ministry has allowed more than 13,000 BIS licensed jewellers to act as a Collection and Purity Testing Centres (CPTCs), provided they have a tie-up with BIS's certified refiners.

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