Worried jewellers to tap idle gold

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New Delhi: Gold jewellers, who are hit by gold curbs, have been asked by the finance ministry to design a “gold scheme” which would help in recycling of the yellow metal to them.
Earlier during the start of the year RBI had tried to make gold deposit schemes of banks more attractive by lowering the investment time period and allowing mutual funds to participate in the scheme. The purpose was to make it attractive for individuals to deposit their idle gold with the banks.
“SBI had offered it but they could not execute it properly so now even government is saying that if you can come out with this kind of scheme definitely government will help it,” said All India Gems and Jewellery Trade Federat-ion (GJF), chairman Haresh Soni.
He said that the GJF have been asked by the  finance ministry to look into all risk factors which will be involved in the scheme and repayment should favour the consumer. GJF is calling it Swarn Bachao Plan (save gold plan).“The government has positively accepted and they have offered us to design a proper scheme were domestic gold can come out and for traders that can be used as working capital  So import can be reduced and our current account deficit (CAD) situation can be improved,” said Soni.
According to initial plans a person will need to deposit his gold for ten years and will earn an interest of 3-3.5 per cent interest per year. By the end of the scheme he will get a bonus and gold in physical form. The individual will have choice in emergency situation to exist from the scheme after 18 months.
“If I give gold I want to get gold and not money. If we can keep that sentiment people will accept this proposition. Every jeweller can help their customer to bring gold to the government. We will market this for the government,” said GJF past chairman Ashok Minawala.  GJF said that jewellers have better infrastructure than banks to market it.