In a bid to make the much-awaited gold monetisation scheme more attractive, the government may do away with the requirement of receipt of purchase for ancestral gold. The same rule may also apply to temple and trust gold, which is estimated to be in huge quantity.
The Union Cabinet had earlier this month approved the scheme. The idea behind mobilising gold held by households and institutions in the country is to put the precious metal into productive use.
The long-term objective is to reduce the country’s reliance on the import of gold to meet domestic demand.
According to the original draft scheme required a depositor to show the purchase receipt of gold besides filling up a KYC form before giving away their gold for melting. But tonnes of gold lying with Indian households has been passed on from generation to generation which does not have any proof of ownership.
“We are trying to make the scheme less cumbersome so that more and more people come forward to deposit their household gold. It is possible that gold passed on as heritage from generations may not have any proof of purchase,” a senior official said.
An estimated 20,000 tonnes of gold is lying idle with households in India, while the country imports an average of 1,000 tonnes every year.
The RBI is preparing guidelines for the gold monetisation scheme keeping in mind the convenience of people, the official said.
The guidelines are expected to be out by Diwali, or early November, after which the scheme will come into force. It may be possible that those who have lost the receipt of purchase of gold will be asked to give a self- attested letter that will treated as the proof of ownership, according to the official.
Initially, the government is planning to introduce the scheme in select cities. The scheme was announced in the Budget this year by Finance Minister Arun Jaitley.