Yellow Metal Goes Monetized-Dynamics and Challenges

India is the second largest consumer of gold in the world, after China accounting for one fourth of world consumption. This yellow metal accounts for the second highest component of the import's bill after crude oil. Despite of this, India continues to import gold which on one side elevates the gold bill and on the other side, pushes up the Current Account Deficit as the payment is made in foreign currency. Thus, in order to mitigate the depletion of foreign reserves, Gold Monetization Scheme was launched. The paper gives its justification by studying the various attributes and dimensions associated with the Gold Monetization Scheme. It also attempts to explore the process for depositing gold, benefits, concerns and challenges involved in implementation of the scheme. Finally, the study unfolds the applicability and finally, makes suggestions for the successful implementation of the aforesaid scheme.