New Delhi/Kolkata, May 12, 2026:
Leading jewellery retailer Malabar Gold & Diamonds has submitted a comprehensive proposal to the Government of India seeking major reforms in the Gold Monetisation Scheme (GMS), strongly backing Prime Minister Narendra Modi’s call for responsible gold consumption and stronger utilisation of domestic gold reserves.
The proposal, submitted by Malabar Group Chairman M. P. Ahammad to Union Finance Minister Nirmala Sitharaman and Commerce & Industry Minister Piyush Goyal, outlines several customer-friendly reforms aimed at increasing public participation in the Gold Monetisation Scheme and bringing idle household gold into the formal economy.
India currently imports nearly 700–800 tonnes of gold annually, creating significant pressure on foreign exchange reserves and the current account deficit. At the same time, Indian households and institutions are estimated to possess nearly 25,000–35,000 tonnes of gold in the form of jewellery, coins, and bars — a massive reserve that largely remains economically inactive.
According to the proposal, improving recycling, reuse, exchange, and monetisation of existing domestic gold could significantly reduce India’s dependence on imports while strengthening long-term economic resilience.
Key reforms proposed by Malabar Gold & Diamonds:
- Integration of organised jewellers into the GMS ecosystem under regulatory supervision
- Reduction of minimum deposit quantity from 10 grams to 1 gram
- Flexible redemption options in gold or cash
- Lower lock-in periods and better liquidity
- Simplified Aadhaar-based e-KYC process
- Customer incentives and loyalty-linked benefits through jeweller participation
- Greater transparency in purity testing and valuation
- GST waiver consideration for recycled gold entering the formal economy
- Alignment of GMS with Gold Metal Loan (GML) frameworks
The company has also proposed a jeweller-assisted collection and facilitation framework under bank supervision, supported by digital tracking systems to improve transparency, customer confidence, and operational efficiency.
Speaking on the proposal, M. P. Ahammad said India possesses one of the world’s largest privately held gold reserves while continuing to rely heavily on imports to meet demand. He stated that with proper policy support and active participation from the organised jewellery sector, the Gold Monetisation Scheme could become a powerful mechanism for mobilising idle gold into the formal economy.
Industry experts believe that if even 1–2% of India’s domestic gold reserves are monetised, nearly 600–700 tonnes of gold could enter active circulation — equivalent to a substantial share of the country’s yearly import requirement.
Malabar Gold & Diamonds said strengthening the Gold Monetisation Scheme would not only improve circulation of domestic gold resources but also help reduce dollar outflows, support economic stability, and contribute to building a more self-reliant Indian economy in line with the vision of Prime Minister Narendra Modi.
