India’s gold monetisation efforts must focus on simplicity, trust and convenience if the country is to unlock the vast stock of idle household gold, said Khushboo Ranawat, Regional Chairperson – West, and Member – National Exhibitions, GJEPC, during a panel discussion at the ‘India’s Gold Revolution: Monetisation, Tokenisation & Financial Transformation’ seminar organised by the Bombay Chamber of Commerce & Industry in Mumbai.
Ranawat was part of the panel on “Building India’s Gold Monetisation Marketplace”, moderated by Neil Borate, Editor-in-Chief of The Federal’s fintech platform The Fynprint. The panel also featured Richa Agarwal, Chief General Manager, SEBI; Ramakrishnan Padmanabhan, General Manager, Department of Metals & Commodities, IFSCA; Nilesh Lodaya, Chief Business Officer, CDSL; Rajnish Gupta, Partner, Tax and Economic Policy Group, EY India; and Gunveer Singh, Executive Director, Department of Payment & Settlement Systems, RBI. The discussion explored ways to channel household gold into the formal financial system, strengthen India’s gold monetisation ecosystem and reduce dependence on imports.
Addressing the challenge of inactive household gold, Ranawat said consumers should first identify jewellery that has remained unused for years and consider formal monetisation options such as the Gold Monetisation Scheme or gold deposit products.
“The issue is not that Indians are unwilling to use their gold financially. Millions of households already pledge gold for loans when needed. The real challenge is creating monetisation products that are as simple, trusted and accessible as gold loans. Once consumers see gold as a productive financial asset rather than something that simply sits in a locker, participation will increase,” she said.
Speaking on the limited success of the Gold Monetisation Scheme, which has mobilised less than 30 tonnes of gold since its launch against an estimated household stock of 25,000 tonnes, Ranawat said the programme’s dependence on melting and purity assessment discouraged participation, particularly for family jewellery and heirloom pieces.
She noted that a significant share of India’s gold holdings consists of investment gold in the form of bars and coins, representing a substantial opportunity for future monetisation.
“The biggest lesson comes from the gold loan sector. Households are willing to bring gold into the formal financial system when the process is convenient and trusted. Going forward, monetisation efforts should leverage the reach of NBFCs, banks and the organised gold ecosystem. If we can replicate the convenience of a gold loan while offering attractive incentives, India has the potential to mobilise significant domestic gold resources,” Ranawat said.
The seminar brought together regulators, market infrastructure institutions and industry leaders to discuss policy reforms, electronic gold receipts, tokenisation and the development of a modern digital gold ecosystem. Speakers included Praveen Rai, MD & CEO of MCX, former SEBI Executive Director Pramod Rao, and senior officials from SEBI, IFSCA, RBI, CDSL and NSDL.