Jewellers May Earn Up to 1% Incentive Under Revamped Gold Monetisation Scheme: IBJA

Indian jewellers could soon unlock a lucrative new revenue stream. According to a revised proposal submitted by the India Bullion and Jewellers Association (IBJA) to the Central Government, jewellers should be offered an incentive ranging between 0.75 percent and 1 percent on every transaction where old gold collected from consumers is handed over to refiners.

IBJA National President Prithviraj Kothari stated that offering this commission on the total value of the collected gold will encourage jewellers to actively promote the scheme. The primary objective of this proposal is to bring an estimated 30,000 tonnes of idle gold currently lying unused in Indian households into the active financial system. Industry experts believe this will help reduce the nation’s reliance on gold imports while giving a much-needed boost to the Gold Monetisation Scheme (GMS), which has previously struggled to gain significant traction.

A New Operational Model
Under the proposed framework, banks would strictly manage the deposits, while jewellers would take on the front-end responsibilities of gold collection, consumer relationship management, and public awareness campaigns. IBJA pointed out that the previous iteration of the scheme underperformed largely because banks lacked the necessary grassroots workforce and retail networks.

Commenting on the development, Senco Gold & Diamonds CEO Suvankar Sen noted that this approach will not only help jewellers strengthen long-term relationships with their customers but also significantly increase footfall in showrooms. While industry insiders are hoping to see the proposal finalized ahead of the festive season, they note that procedural approvals and policy discussions may cause some delays. If the government gives the green light, this will mark the first time jewellers play a central, formalized role in the Gold Monetisation Scheme.