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To make a success of the gold monetisation scheme recently proposed by the central government, experts have suggested expanding the network of collection centers to include entities with which gold customers have regular contacts.
That is, to recognise jewellers, banks, non-banking finance companies (NBFCs) and commodity exchanges as collection centres, in addition to the hallmarking centres proposed in the draft scheme last week.
A meeting of jewellers, bullion experts, professionals and commodity exchange representatives was held here last Monday, under the auspices of India Bullion and Jewellers Association (Ibja). Several issues came up as needing more clarification by the government, before it formally launches the scheme.
“A normal depositor has a quick and easy approach to jewellers, banks, NBFCs, etc. He has been dealing with all these agencies,” noted Mohit Kmboj, president of Ibja. He said the association had strict norms for selecting member-jewellers and so, these could be made collection centres.
In the meeting, experts said the 351 hallmarking centres would not be able to together mobilise more than 10 tonnes of gold in a year. Nor do most hallmarking centres have a viewing gallery, when the draft scheme says melting of jewellery should be done at such places in front of the customers. Ibja says customers should also know in advance what documents would be required and information have to be given before opening an account with banks.
Ibja also says clarifications on taxation aspects are needed. For instance, whether any authority is going to ask for the source of a gold deposit. Also, the procedure for addressing differences in gold purity as determined at the hallmark centres and the refinery where these are to converted into bars.
Jewellers say gifting, nominating and transferring such deposits should be allowed. Says Kamboj, “If this is allowed, a huge amount of gold will be converted to deposits under the scheme.”
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