Gold trade bodies call for flexibility in monetisation scheme

Gold trade bodies have suggested the government make the Gold Monetisation Scheme (GMS) more attractive in the upcoming budget by offering flexible tenures, higher interest rates, and tax-exemptions on up to 500 grams of ancestral gold deposits. The aim is to mobilise 22,000 tonnes of gold and reduce imports.

Difficult to lower rates without easy funds: Microfinance institutions

Heads of microfinance institutions (MFIs) emphasize the difficulty in lowering interest rates without access to cheaper funds, suggesting a dedicated credit guarantee scheme or refinance facility. With current rates between 21% and 24%, there is regulatory pressure to reduce them. Alternatives include revamping existing credit guarantee schemes and introducing an interest subvention scheme.