"The proposed introduction of a gold deposit scheme is a big positive and conservative estimates show that the monetary value of gold deposits mobilised may be at least Rs 1 trillion," it said in note today.
It will be a "game changer" by incentivising the banks to hold a part of the deposits as part of the mandatory cash reserve ratio or the statutory reserve ratio. This may free up resources for productive or lending purposes, it said.
According to the note, the new scheme will help depositors of gold earn interest and jewellers to obtain loans on their metal accounts.
In the Budget speech, Jaitley had introduced multiple measures to monetise gold, including the gold monetisation scheme, a sovereign gold bond and developing an Indian gold coin which will have the Ashok Chakra.
"We are one of the largest consumers of gold in the world and import as much as 800-1,000 tonnes each year. Though stocks of gold in India are estimated to be over 20,000 tonne, mostly this gold is neither traded, nor monetised," he said in the speech.