Modifies the existing ‘Gold Deposit Scheme’ (GDS), and ‘Gold Metal Loan Scheme (GML) is intended to mobilize gold held by households and institutions of the country and facilitate.
Here we uploaded most importantly information on Gold Monetization Scheme in India likewise Aims, Benefits, Features, Rates of Intrest, and Many More.
- Its use for productive purposes, and in the long run, to reduce the country’s reliance on the import of gold.
Gold Monetization Scheme:
- Prime Minister Narendra Modi launched the Gold Monetization Scheme in 2015.
- Under this government, young people can deposit their gold in any form in the GMS account to earn interest as the price of gold metal goes up.
Aim of Gold Monetization Scheme:
The aim of PRIME Minister Narendra Modi under this scheme is to mobilize gold and facilitate.
- Its use for productive purposes, which further also help in reducing India’s dependability on gold imports.
- The plan will also benefit jewelers by allowing them to obtain loans.
- Lending institutions such as Banks and NBFCs, too, will able to monetize gold.
The Benefits of Gold Monetization Scheme
Features of Gold Monetization Scheme:
- The gold mobilized under the short term bank deposit (STBD)is given to jewelers as gold metal loans.
- The jewelers will get the gold delivered physically either from the designated bank.
- The nominated banks will be able to import only for the redemption of gold deposits mobilized under STBD.
- When the person has to borrow money to fulfill his needs.
- He can keep his gold mortgage to financial institutes and get the amount of money on credit.
- After paying interest to the financial institute, he can get back his gold, which he kept as security at the time of borrowing from a financial institute.
GMS - Rates of Interest:
- According to the ICICI Banks website, the deposits will province in grams of gold with a purity of 995.
- The deposit minimum of 30 grams of raw gold will help the depositor earn interest decided by the government and notified RBI Banks from time to time.
- The regular rate of interest under GMS for medium-term deposits five to seven years is 2.25 percent.
- Interest on long-term deposit is 2.5 percent for the period of twelve to fifteen years.
- Interest rates decided by the government where interest and principal amounts are pay in rupees.
- For the short term gold deposit scheme, the interest rate determines by the authorized bank and along with the principal amount payable in gold.
- New imports of gold were 766 tonnes in 2018 and 837 tonnes in 2017 according to metal forms. Gold is among the top five commodities after crude oil electronic equipment.
Conclusion of Gold Monetization Scheme:
- In Indian house, holds gold is lying idle on which person doesn’t get interested in earn.
- Therefore, the government launches Gold Monetization Scheme under which un use gold in households and trust turns into a productive asset to facilitate its use for productive purposes.
- In this way, interest can earn by citizens of India on gold, which keeps unutilized by them and remains idle in cupboards.