Financial institutions have applauded the Indian Pirme Minister Narendra Modi’s intent of implementing a gold monetization scheme in the country, as per reports. YES Bank has launched gold sovereign bonds at its key branches in India, and is shaping up its gold monetization scheme. It views the PM’s decision to be one taken at a good time of India’s festivals of Diwali and Dhanteras, when Indian indulge in gold buying, reports say. The scheme would give the consumer the benefit of gaining income from physical gold and also boost the economy, as it would help give the right direction to the savings in unproductive physical assets for better investments.

ICICI Bank too plans to begin accepting applications for the sovereign gold bonds scheme across its branches and also through its ICICI Direct platform. The Bank has also designated one branch for the Medium and Long Term Government Deposit Scheme by the Indian government.

The gold monetization scheme would also enable enhancing the local hallmarking and push ‘Made in India Gold’ demand, as per reports.