India plans dematerialized GMS gold units to mobilize household hoards
India is planning to introduce dematerialized (digital) gold units under the GMS.
The goal: make it easier for people to earn from their gold, cut down on expensive imports, and unlock some of the 25,000 metric tons of gold sitting in homes.
But so far, high costs and clunky processes have kept most people away.
Costs and infrastructure curb GMS uptake
The GMS lets you deposit your gold with banks and earn some interest: think of it as putting your jewelry to work.
But with loss of making charges when jewelry is melted and not-so-great infrastructure, many prefer classic gold loans instead.
Experts suggest that better refining standards and more trust in digital gold could help the revamped scheme finally catch on, and maybe even spark new financial products tied to gold in India.