India has left behind China in the area of importing or procuring gold from other countries. Buying gold is influenced by many factors including economic, social and cultural factors. Increasing import of gold is burden for Indian government as their balance of payment is going in deficit. Central government in joining hands with Reserve Bank of India has introduced gold monetization scheme. Under this scheme, individual and other initiations having accumulated gold can convert their physical gold into certificates. After conversion, these gold certificates can be easily tradable from one person to another person. In this scheme, financial institutions will play important role as beneficiaries of gold monetization scheme can open gold saving account on which they will be getting interest from financial institutions.