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Jewellers seek a role in new gold monetisation scheme |
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KOLKATA: Jewellers have urged the government to give them an opportunity to join the gold monetisation scheme announced in the budget, instead of leaving it to the banks alone to implement the plan to let people earn interest on the estimated 20,000 tonne of precious metal lying idle in households across the country.
"We had a meeting with the finance ministry officials recently where we urged that jewellers be involved in the process to make the scheme successful," said Manish Jain, chairman of the All India Gems & Jewellery Trade Federation, which represents over six lakh players including manufacturers, wholesalers, retailers, distributors, gemologists and designers.
Although the government is keen that banks alone handle the monetisation scheme, further discussions will take place on the issue, said Jain. Traders also want banks to increase deposit rates on gold to 3% from 1.25% at present so that more idle gold will come into the system and subsequently, India's dependence on imports will come down. India imports 850-900 tonne of gold annually.
Finance Minister Arun Jaitley had said, while presenting the budget for 2015-16, that a gold monetisation scheme will be introduced to allow depositors of gold to earn interest. Banks and other agencies can also monetise this gold. "The operational aspects of the gold monetisation scheme needs to be investorfriendly to become successful.
Consumers should be given immunity and they should not be asked too many questions when they deposit the gold. Too much questions scare the customers and they will stay from the scheme," Jain said.
Harmesh Arora, executive director at the Indian Bullion & Jewellers Association said that not only jewellers but also refiners should be involved in the process. "Refining is a key issue when it comes to gold monetisation scheme. The monetisation scheme should be an attractive one so that women in particular come forward," he said.
Jewellers are also keen to sort out the issue of submitting Permanent Account Number, or PAN, details for purchase of gold worth Rs 1 lakh and above before it is tabled in the second phase of Parliament's budget session that starts from April 20. "Submission of PAN card is not practical and will discriminate against 70% of the rural buyers as they are not under tax net and do not have PAN cards," said Jain, adding that the high import duties have promoted smuggling and this new measure will in no way stop generation of black money.
Industry executives said that the delay in lowering duty on gold is only encouraging black money that will get parked in gold. "The government needs to come up with more trade-friendly policies," said an executive.
Source : economictimes.indiatimes.com
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