Recently Finance Minister Arun Jaitley launched Gold Monetization Scheme. Lets know about this scheme.
- The main focus of this scheme is to reduce the gold in physical form lying in households and any other entities.
- Under the Gold Bond Scheme, Gold Bond will issue 500 grams per person per year for the period of 5 - 7 years.
- According to Sovereign Gold Bond (SGB) scheme, to develop a financial assets as an alternative to Gold.
- Gold Monetisation Scheme launched especially for channelize country's idle gold assets.
Working of Scheme
- The RBI issue gold bonds on the behalf of the government.
- Idle Gold can be deposit in banks for short, medium or long term. Depositories of Gold will earn interest on their metal accounts.
- Quantity of Gold to be credited in account will depend upon purity of Gold.
- Bullion as well as Jewellary, is acceptable for deposit.
- Minimum Limit for deposit of Gold is 30gm.
- The RBI issue gold bonds on the behalf of the government.
- The bonds will be issued in 2, 5, 10 grams of gold.
- Interest on Gold Bonds to be decided by government from time to time.
- On maturity, redemption will only be in rupees.
- Redemption can be done through NBFCs, Banks and Post Office.
- Risk of Increase in Gold price will be borne by Government.
- The major benefit of this scheme would be that reduction in Imports of Gold because India imports about 1000 tonnes of Gold.
- (Another important announcement is that 100% FDI in White Label ATM is allowed).
==>> Must read - Sovereign Gold Bond scheme vs Gold Monetization Scheme
