| Pub. Date | : October, 2021 |
|---|---|
| Product Name | : The IUP Journal of Accounting Research and Audit Practices |
| Product Type | : Article |
| Product Code | : IJARAP231021 |
| Author Name | : Shree Jyothi Koutha* |
| Availability | : YES |
| Subject/Domain | : Finance |
| Download Format | : PDF Format |
| No. of Pages | : 18 |
Traditionally, Indians have been known as accumulators of gold, who take pride in investing huge amounts in collecting gold jewelry. However, this investment is confined to lockers either at home or in banks for most of the time without earning any returns for the investors, except for gratifying their family pride and prestige. The Indian government has come out with a scheme of monetizing this, literally speaking, gold mine, wherein the gold gets deposited and attractive returns are assured on maturity with active involvement of banking sector, both private and public. The paper attempts to study the popularity and success of this Gold Monetization Scheme (GMS) among bank customers and the reasons thereof.
Being a part of the ethos of every Indian household irrespective of the socioeconomic conditions, gold remains an integral and most important part of the investment portfolio of every member of this country. As a lot of sentimental value is attached to the gold possessed, it is never treated as an investment in the modern sense of investment but hoarded physically. As per the union budget for 2015-16, it is estimated that there were about 20,000 tons of gold in India that was not traded or monetized, offering huge potential for income generation, and hence the Gold Monetization Scheme (GMS) was launched.
In this paper, an attempt has been made to study the popularity of the scheme along with the preference of investors between public and private banks. An analysis has been done to evaluate the success of this scheme and study the difference in the performance of public and private sector banks.
Gold Monetization Scheme
Monetization refers to the process of converting a commodity into domestic currency. Gold monetization refers to unlocking the value of gold in terms of rupees. Gold Monetization