"The Union Cabinet's announcements reflect both, a very practical approach and a long term view of gold. The Gold Monetisation scheme will drive orderly recycling and enhance transparency, benefiting millions of households and the macro economy, as it has the potential to translate gold savings into economic investments," World Gold Council, India, Managing Director Somasundaram PR said.
    
He said the question is no longer whether the scheme will work, but how to make it attractive for customers.
    
The scheme must be well-marketed, promoting the attractive features that individual banks may include in the design of their offer within the monetisation framework to ensure that the household savings in gold can be tapped by the banking industry.
    
This will pave the way for a more active and larger role for Indian banks in bullion. It is also a step towards gold becoming an integral part of the larger financial system and a fungible asset class in its own right, he added.
    
All India Gems and Jewellery Trade Federation (GJF) former director Bachhraj Bamalwa opined that it is a positive step for the jewellery industry, which will not only benefit the jewellers but also the consumer and the government.
    
"The consumers will get benefit through the interest they get from the government and will lend it to the industry. The industry will also get stock easily and the imports will come down, hence, it's a win-win situation for all," Bamalwa added.

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