The government is planning to create Diwali cheer ahead of the festival of lights. Government plans to unleash four gold related investment schemes on November 5 two days before Dhanteras (Hindus buy gold and precious metals)
Prime Minister Narendra Modi will inaugurate the gold monetisation scheme or GMS along with three other gold related Schemes on 5th November
Under the gold monetisation scheme people can deposit a minimum gold equivalent to 30 grams and it shall be raw gold (bars, coins, jewellery excluding stones and other metals).
There is no maximum limit for deposit under the scheme.
The gold deposits will be accepted for short term tenure (1-3 years), medium term tenure (5-7 years) and long term tenure (12-15 years). The short term deposits will fetch 2.25 per cent interest on current price of gold while the long term investment would fetch 2.5 per cent interest.
The government plans to tap unused gold in private possession, lockers and deposit boxes lying idle to help banks raise their deposits and benefit from the liquidity which deposited gold would generate
The gold deposited under the scheme will be auctioned by MMTC or any other agency authorised by the central government and the sale proceeds will credited to the central government's account with the Reserve Bank of India.
To tap the Indian love for yellow metal PM Modi will be launching the gold coin scheme. For the first time there will be official Indian gold coin bearing the national emblem of Ashok Chakra engraved on one side.
These gold coins will be available in denominations of 5 and 10 grams.
A 20 gram bar/bullion will also be available. Initially, 15,000 coins of 5 grams and 20,000 coins of 10 grams and 3,750 gold bullions will be launched.
The Prime Minister will also launch the sovereign gold bond which will be issued by the Reserve Bank India on behalf of the government of India.
The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram. The tenure of the bond will be for a period of 8 years with exit option from fifth year to be exercised on the interest payment dates.
Gold Bonds will fetch fixed interest rate of 2.75 per cent per annum payable semi-annually on the initial value of investment. These Bonds can be used as collateral for loans.
Government sources said that normal income and capital gains taxes would apply to the gold schemes.
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