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|Sohan said: (Apr 29, 2021)|
Myself Sohan our topic is the monetization of gold. In my opinion monetization of gold is a very good initiative by the government of India. It was launched under PM Narendra Modi government. Under this scheme, people can deposit gold in form of jewelry, coins, etc in the bank and they will get interested on this basis of deposition annually. Under this scheme minimum 30 gm of gold should be deposited and the is no upper bar limit on deposition. People can be deposited for a different time period such as short term (1-3 yr), medium-term (3-5 yr), and long-term (more than 5 yr). They can withdraw at any time but they have to interest before the time.
Some of the benefits of GM:
1. It ensures the safety of gold as it saves from robbed.
2. It helps to earn some money in the form of interest.
3. It reduces the government from import of gold.
4. It helps to save the mobilization of gold to foreigners.
5. It helps the people from tax.
|Aakanksha Nigam said: (Nov 23, 2020)|
I hope you're doing well and staying safe.
I'd like to provide my reading into this topic. Gold Monetization Scheme is introduced by Government of India in 2015. Under this scheme one can deposit their gold in any form in a GMS account to earn interest as the price of the gold metal goes up.
There are 3 types of deposits under GMS:
Short Term Gold Deposit (STGD)
Medium Term Gold Deposit (MTGD)
Long Term Gold Deposit (LTGD)
The gold monetization schemes are:
1. Mobilise idle gold
2. Earn interest
3. Avail secured storage
4. Enjoy tax benefit
5. Get flexibility on redemption
6. Reduce the government's reliance on gold imports
Finance Minister Arun Jaitley, in the 2015-16 budget, had announced the development of a financial asset - sovereign gold bond - as an alternative to the precious metal, and the borrowing through issuance of the bond will form part of market borrowing programme of the government.
The gold bonds are denominated in multiples of gram(s) of gold with a basic unit of one gram while the minimum investment limit is two grams.
The maximum subscription is 500 grams per person per fiscal (April-March) and for joint holders, the limit will be applied on the first holder.
As per the scheme, the gold bonds will be sold only to resident Indian entities including individuals, Hindu undivided families, trusts, universities, and charitable institutions.
The issue and redemption price are in Indian rupees fixed on the basis of the previous week's (Monday-Friday) simple average of the closing price of gold of 999 purity published by the India Bullion and Jewellers Association Ltd.
As per the scheme, the bond tenure will be eight years with exit option beginning the fifth year onwards. The bonds will also be tradable in the bourses.
The rate of interest will be 2.75 per cent per annum payable semi-annually on the initial value of the investment.
Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
As to the tax treatment, interest on gold bonds will be taxable as per the provision of Income Tax Act, 1961 and the capital gains tax shall also remain same as in the case of physical gold.
Commission for distribution shall be paid at the rate of one per cent of the subscription amount.
Having said that, I've read and found that only 400 grams have been deposited so far under the gold deposit scheme and the government has agreed to review the scheme and open more centres for gold testing and depositing in banks, says a report.
Quoting, Anil Sankhwal, the northern regional chairman of Gem and Jewellery Export Promotion Council (GJEPC), the reports says, a shortage of centres to assay the gold being put on deposit is a problem that the government has agreed to address.
After meeting with Finance Ministry officials, Sankhwal told reporters that only 400 grams have been deposited so far (under the gold deposit scheme) and the government has agreed to review the scheme and open more centres for gold testing and depositing in banks.
Hence, I believe that if the scheme is reviewed again then definitely it would be great step for the Indian people and to increase the GDP of the country.
|Rakesh Shivbhakt said: (Nov 28, 2019)|
|Gold mobilization is a great move by the government of India because most people kept their gold at home and take tension from theft and no earn money from gold. That's why now they can also earn money by depos2their gold in banks take advantage of government schemes.
And due to this our GDP also increase simultaneously. The everyday cost of gold increases so we never earn money but this is the chance that we also make money.
|Shivam Singh said: (Oct 13, 2019)|
|Gold Monetization will help people earn money without even worrying about the safety of their gold. Most beneficial point if it will be that it will contribute to economic activity and therefore increase the GDP of the nation as savings don't contribute to the nation's economy. With people earning money as well as the country's economy going up, I and believe that it is a brilliant scheme by the government.|
|Sameer Mathur said: (Feb 7, 2019)|
|Warm Regards to all,
In my view, gold monetization scheme is a great initiative by our Government as we can keep our gold in any form in Gold Monetization Scheme and earn interest as the price of the metal grows up.
It is a fantastic avenue to earn some return which otherwise was parked in Bank Lockers or homes.
From the point of view of Taxmann, its transfer is exempt vide Section 47 and any interest earned on it is exempt u/s 10 (15) (vi).
|Ashu said: (Feb 5, 2019)|
|Gold monetisation have following merits:.
-it is safer with the government.
-helps in GDP growth.
-good for society and people both.
-better to use it instead of keeping it idle at home.
|Sandeep said: (Nov 23, 2018)|
|I think gold monetisation is good of every people as well as the country. Some people have a large amount of gold and they are worried about gold or theft. And this does not give extra money but gold monetisation gives you approx 2. 2-2. 5%per annum and also safe your gold.|
|Srinivas K said: (Nov 15, 2018)|
|Indians are very fond of Gold ornaments as everyone knows. We, just keep those in the locker and use occassionally to showcase our richness in the society. But, why we really need to keep something idle for years and years in lockers which has capability to increase your wealth? GMS is one such nice scheme by Govt, by which we can earn money with our Gold.|
|Gopi said: (Sep 4, 2018)|
|In my view, gold monetization is a great initiative taken by the government. In India people of most regions have a habit of buying gold as a symbol of status, as a result, there is an increase in import of gold to India every year. Gold is like static liquid it won't help for countries economic growth. Monetization helps both society and people. In the present scheme, the government is providing interest at the rate of 2.25-2.5 % depending on the period and value of gold deposited. We won't get anything if we store gold in our homes this scheme helps in getting interest from it and helps for countries GDP growth. Hence more awareness should be provided to people and scheme should be made succesful. Thank you.|
|Mohini Pandey said: (Aug 12, 2018)|
|GMS allows the depositors of gold to earn tax free market determined interest income (denominated in gold but recoverable either in gold or in rupee [mandatorily in rupee if it is deposited for a medium or long term]) from the pure gold they deposit with banks in their "Gold Savings Accounts" and permits the jewelers to obtain their raw material -gold bars created from the melting of the gold deposited with the banks- as loans in their "Metal account".|
|Muskan said: (Aug 12, 2018)|
|According to me, it'a great idea of gold monetisation because as we can see the liquidity of gold has been dec soo much so by this we can get gold back in the markets rather than storing them in banks lockers.|
Gold Monetization Scheme
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