I know Jewellery shops are allowed to take the money collected from monthly saving schemes, and use it as part of their working capital. Which is why RBI has restricted these schemes to maximum 11 months and mandated that they should be converted to Jewellery within 12 months. (Carry forward is not allowed).
Some Jewellery shops do allow conversion to Coins, but there is a 4-5% making charge for that. And I have to take the coin to the same shop for making jewellery. If I go to another shop they discount it further. If I have to sell the coin for some emergency it is even more difficult.
I found that milliGOLD is much safer because they buy the 999 bar at the MCX Exchange at MCX Price and store it in the MCX Exchange vault, till the time I need to make Jewellery. And when I redeem the accumulated grams, through their app, they can settle to any Jewellery Shop of my choice, as long as the shop is in India and the shop accepts QR or IMPS payment.
I have already redeemed part of my accumulated gold (without stopping my monthly plan) to buy one high value jewellery for my wife, and I am planning to buy many more down the years.
Hari Krishnan K