The Central government is reportedly preparing a major push to revive and strengthen gold monetisation efforts in India, aiming to bring idle household gold into the formal banking system. Under the proposed plan, citizens may soon be able to deposit their gold in banks and earn interest on it, making unused gold a productive financial asset.
According to reports, banks could be allowed to accept gold deposits starting from as low as 10 grams, making the scheme accessible to a larger section of the population. The broader objective behind the move is to reduce India’s massive dependence on gold imports, which currently exceed 700 tonnes every year.
India is estimated to hold nearly 30,000 tonnes of gold in households, much of which remains locked away in lockers and homes. Officials believe that if even 2,000 tonnes of this gold enters the banking system, the country may significantly reduce or even avoid fresh gold imports for the next three years.
The deposited gold is expected to be refined and made available to jewellers and manufacturers, helping meet domestic demand without relying heavily on international purchases. Experts say the move could help reduce pressure on foreign exchange reserves and strengthen the Indian economy over time.
The proposed gold monetisation push is also being seen as an attempt to change the traditional mindset around gold ownership in India by encouraging people to treat gold not just as a stored asset, but as an income-generating investment. If implemented effectively, the initiative could become one of the government’s biggest steps toward unlocking dormant national wealth while reducing import dependence.