The major drawback of this scheme could be that it is being carved out of the fiscal deficit. Hence this scheme will be subject to the discipline that the Fiscal Responsibility Act imposes on the fiscal deficit on an annual basis. Let us take an example. Suppose the government has reached close to its fiscal deficit targets and there are still a couple of months to go, then the obvious victim will be the SGBS. That builds an element of uncertainty around the continuance and sustenance of this scheme.

Also in terms of financial engineering, the government could have combined the SGBS with the GMS. It would have hit two birds with one stone. On the one hand it would have enabled the idle gold to come out into the productive mainstream. On the other hand, it would have aided the success of the SGBS too. It is quite surprising why the government did not combine these two schemes.