Gold Monetization Scheme
The Gold Monetization Scheme was launched on 5th November by the Prime Minister Narenda Modi. The scheme is designed to help you earn interest on your unused gold lying idle in bank lockers. The Gold Monetization Scheme is basically a new deposit tool to ensure mobilization of gold possessed by various families and institutions in India. It is expected that the scheme would turn gold into a productive asset in India. This new gold scheme is a modification of the existing Gold Deposit Scheme (GDS) and Gold Metal Loan Scheme (GML), and it would replace the existing Gold Deposit Scheme, 1999.
Deposit allowed under Gold Monetization Scheme 2015
An investor can deposit gold for short, medium and long terms under the Gold Monetization Scheme. The scheme would allow an investor to deposit gold in Short Term Bank Deposits (SRBD) and Medium and Long Term Government Deposit (MLTGD). The tenure of a Short Term Bank Deposit is 1-3 years. The Medium and Long Term Government Deposits can be opened for 5 -7 years and 12-15 years respectively. The Short Term Bank Deposit would be accepted by individual banks on their own account. But the Medium and Long Term Government Deposits would be accepted by banks on behalf of the Government of India based upon notification issued by the Reserve Bank of India.
Gold Monetization Scheme Eligibility
All residents Indians can invest in this new Gold Monetization Scheme. 2015.
Key features of Gold Monetization Scheme
The Gold Monetization Scheme comes with the following features:
- The scheme accepts a minimum deposit of 30gm of raw gold in the form of a bar, coin or jewelry.
- There is no maximum limit of investment under this scheme.
- The scheme allows premature withdrawal after a minimum lock-in period. However, it charges penalty for such withdrawals.
- All designated commercial banks would be able to implement the Gold Monetization Scheme in India.
- The scheme would offer interest at 2.50% per year which is higher than previous rates offered on gold investments.
- The short term deposits offered by Gold Monetization Scheme can be redeemed in either gold or in rupees at current rates applicable at the time of redemption.
Benefits of investing in Gold Monetization Scheme
By investing gold in the Gold Monetization Scheme 2015, an investor can enjoy the following benefits:
- You would earn interest on your idle gold which would add value to your savings.
- The scheme would benefit the country by reducing its gold import.
- The schemes offers flexibility. You can withdraw your investment/gold as and when you need it.
- You can start your investment with as low as 30gm of gold.
A portion of the gold collected through the Gold Monetization Scheme can be sold or lent to MMTC and RBI for minting of gold coins and sale. Thus, the gold deposited through this scheme will be re-circulated in the country to help reduce gold imports. Gold being the most precious asset of the country, the Government of India aims to use it for the purpose of nation building and strengthen the country’s economy
Also check Today's Gold Rate in the most popular Indian cities
- Does Gold Monetization Scheme 2015 allow withdrawal of investments?
Yes, the scheme allows withdrawal of your investments. You can withdraw your gold after completing the minimum lock-in period.
- What is the rate of interest offered by the Gold Monetization Scheme?
The rate of interest offered by the scheme ranges from 2.25% to 2.50% per year.
- How many deposit schemes are available under the Gold Monetization Scheme?
Three deposits schemes are available under the Gold Monetization Scheme which include - Short Term Bank Deposits (SRBD) and Medium and Long Term Government Deposits (MLTGD).
- What is the tenure of a Short Term Bank Deposits (SRBD)?
The tenure of a Short Term Bank Deposits is 1-3 years.
- For how long can I invest in a Medium Deposit?
You can invest in a Medium Deposit for a period of 5 to 7 years.
- Can I invest in a Long Term Deposits for 14 years?
Yes, you can invest in a Long Term Deposit for 14 years. The Gold Monetization Scheme offers Long Term Deposits for a period of 12 to 15 years.
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