The following are the 3 Gold Schemes, termed as as the “Sone Pe Suhaga”, launched by the Prime Minister Narendra Modi on 05thNovember 2015:
Gold Monetisation Scheme /GMS- (Deposit of Idle Gold kept by the people of India in the form of Gold: Bars,
- Biscuits,
- Coins and
- Jewels
with the Government of India through Banks),
‘Sovereign Gold Bond Scheme’- ( Deposit of Funds with the people of India, for Investments based on Gold with the Government of India) and
Gold Coin and Bullion Scheme /GCBS- (Investment of Funds with people in India in Gold, by purchasing Gold Coins minted by the Government of India)
The Following are the brief details of the above 3 Gold Schemes:–
Gold Monetisation Scheme /GMS:
The Gold Monetisation Scheme /GMS- 2015 will replace the existing ‘Gold Deposit Scheme-1999’.
According to the Government of India, there are about 20, 000 Tonnes of Gold worth about Rs 52.4 Crores are lying idle / unused, in the Bank Lockers of the Indian Families and with and of the Temples in India.
A minimum of 30 grams of raw Gold-Bars, Gold Biscuits, Coins and Gold Jewellery, can be deposited under the Scheme and the jewels etc will be melted and the net weight only will be taken into account. And in the process the weight of stones and other metals like Copper and Silver mixed with Gold will be deducted.
There is ‘No Maximum Limit” for the above deposit of Gold under the Scheme.
The Banks in India will collect Gold from the public as deposit for periods up to 15 years,
Gold will be accepted at the ‘Collection and Purity Testing Centres’/CPTC, certified by the ‘Bureau of Indian Standards’/BIS and notified by the Central Government of India.
The deposited Gold under the Scheme will be auctioned and lent to the Jewellers for their use for making jewels etc.
The Jewellers will pay interest at the rates from 2.25 to 2.5 per cent per annum, whereas, the earlier rate of interest under the Gold Deposit Scheme-1999 had been 1 per cent per annum only.
However, the deposits outstanding under the Gold Deposit Scheme will be allowed to run till maturity unless the depositors prematurely withdraw them.
Sovereign Gold Bond Scheme:
The Sovereign Gold Bond Scheme launched offers 2.75 per cent interest to domestic investors.
Interest on gold bonds, which can be used as collateral for loans, will be payable every six months.
The Sovereign Gold Bonds will be issued in multiple tranches, subject to the overall borrowing limits of Government of India,
The Sovereign Gold Bonds will be issued for a period of 8 years, with exit option from the 5thyear, which may be exercised on the interest payment dates.
Applications for the Sovereign Gold Bonds under the First Tranche will be accepted from 05th November 2015 till 20thNovember 2015, and the Sovereign Gold Bonds will be issued on 26thNovember 2015,
Under the Scheme, the Domestic Investors will get interest at the rate of 2.75 per cent, payable every
6 months.
6 months.
The Sovereign Gold Bond Accounts may be used as Collateral for Bank Loans.
The Scheme will reduce the physical buying of Gold by the people for investment purposes.
The Sovereign Gold Bonds will be sold through the Banks and Designated Post Offices in India
Gold Coin / Bullion Scheme:
Gold Coins under the Gold Coin /Bullion Scheme are the First Ever National Gold Coins, minted in India; with the Indian National Emblem ‘Ashok Chakra’ engraved on one side and the Image of ‘Father of the Nation’-Mahatma Gandhi on the other side.
The National Gold Coins will be available through MMTC outlets, in the following Denominations:-
Grams / Number of Coins:
- 5 / 15,000,
- 10 / 20,000 and
- 20 / 3,750.
Various schemes launched will increase the availability of gold and bring down its import, thereby getting more foreign exchange surplus.
Reception of the Gold Schemes launched by the Government of India:
According to the Experts and Bankers the’ Gold Monetization Scheme’ may not be preferred by the public depositors, due to the Income Tax Concerns as to the declaration of the source of Gold etc.
The Investors should have to disclose their IT PAN Number registered with the Income Tax Department for deposit of Rs 50,000/- and above of Gold or Cash.
There will be a loss of Gold of 20 to 30 per cent of the weight of the Jewels, as the jewels will be melted at the Certified Centers at the cost of the Depositors.
The conventional Bank Deposits offering Interest at the rate of 8 per cent and above will be more attractive than the above Gold Deposit / Gold Bonds Schemes.
According to the Union Government of India, as the women of India have been fond of acquiring gold for jewellery and as investment they are led by the policies of ‘Graha Shashtra’ /Home Economics, whereas, by switching over to the new Gold Schemes since launched will take them to understand and follow ‘Arthashashstra’/Economics for and of the nation.
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