Budget 2015: Gold bond to yield Turkish delight for Indian households

The FM's proposal to launch a revised gold monetization scheme is expected to in crease the supply of gold to the jewellery industry and also for investment. For, through this scheme, banks can channelize gold held by households to the industry. At the same time, it will not curb demand for gold through steps like higher import duty and other forms.

The idea behind the scheme is similar to one that was launched by Turkey through which it channelized about 250 tonnes of gold, worth about Rs 67,000 crore, in three years.

“The monetization scheme will drive orderly recycling and enhance transparency, benefiting millions of households and the macro economy, as it has the potential to translate gold savings into economic investments,“ said Somasundaram PR, MD, India, World Gold Council.