Gold Monetization Scheme

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17 comments Page 1 of 2.

Gopi said:   6 years ago
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.
(57)

Manisha said:   3 years ago
Hello everyone.

The gold monetization scheme is launched by honorable prime minister Modiji in 2015. Under this scheme, we can deposit gold in the form of jewelry, coins, raw gold, etc in banks and banks provide safety to our gold as well as gives interest. Before the gold monetization scheme banks used to charge on deposit of gold from us. But now the condition is changed.

There are 3 ways to deposit our gold in the bank as follows.

1. Short-term gold deposit (1-3 yrs).
2. Mid-term gold deposit (3-5yrs).
3. Long-term gold deposit (more than 5yrs).

Benefits of this scheme-.

1. Provides security to our gold so no risk.
2. They give interest to us.
3. Saves our tax.
4. Reduces the import of gold by the government from foreign countries.

Overall it's a very great initiative taken by the government.

Thanks a lot!
(35)

Rakesh shivbhakt said:   5 years ago
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.
(34)

Ashu said:   5 years ago
Gold monetisation have following merits:.

-it is safer with the government.
-intrest revenue.
-helps in GDP growth.
-good for society and people both.
-better to use it instead of keeping it idle at home.
Thank you.
(21)

Dnyaneshwar said:   3 years ago
Hello everyone,

In Indian homes, there were tons of gold is lying idle. Hence Government of India launched the gold monetization scheme to turn this gold into a productive asset. In 2015 Prime Minister of India launched this scheme which aims to mobile gold and uses it for the productive purpose it ultimately reduces the import of gold from other countries. This scheme also beneficial to Jewellers by allowing them to obtain loans. In 2015 and 2016 government also announced gold deposit schemes and gold metal loan schemes but these schemes are under the guidelines of RBI.
(18)

Sameer Mathur said:   5 years ago
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).
(16)

Srinivas K said:   6 years ago
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.
(15)

Muskan said:   6 years ago
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.
(13)

Shivam Singh said:   5 years ago
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.
(13)

Aakanksha Nigam said:   4 years ago
Hi Friends,

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

Present Scheme:
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.

Thanks
(10)


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