Gold Monetisation Scheme Benefits: Deposit Your Gold and Earn Interest
Gold Monetisation Scheme Benefits: The Gold Monetisation Scheme is a government-backed program in India that allows individuals and organizations to deposit their gold with authorized banks and earn interest on it. The scheme is designed to reduce the country’s dependence on imported gold, promote the domestic gold market, and provide a safe and convenient way for people to earn interest on their idle gold holdings. Some potential Gold Monetisation Scheme Benefits include:
- Encouraging individuals to invest their gold in a productive manner, rather than keeping it idle.
- Mobilizing idle gold in the country and channeling it into the financial system, where it can be used for productive purposes.
- Providing a safer and more convenient way for people to earn interest on their gold, compared to traditional methods such as jewelry loans.
- Reducing the demand for imported gold, which can help to reduce the country’s trade deficit and support the domestic gold market.
- Creating new business opportunities for banks and other financial institutions, as well as gold refiners and assayers.
Gold Monetisation Scheme Overview
Gold Monetisation Scheme (GMS) is a scheme launched by the Government of India in 2015, with the aim of mobilizing the idle gold held by households and institutions in the country. The scheme is administered by the India Bullion and Jewellers Association (IBJA).
Here is an overview of the Gold Monetisation Scheme:
|Eligibility||The Gold Monetisation Scheme is open to all residents of India, including individuals, trusts, temples, and charitable institutions.|
|Types of deposits||The GMS offers two types of deposits: short-term and medium-term to long-term. The short-term deposits have a maturity period of 1 to 3 years, while the medium-term to long-term deposits have a maturity period of 5 to 7 years.|
|Interest rate||The interest rate on the deposits is determined by the government and is payable on a monthly basis. The interest rate for the short-term deposits is 2.50% per annum, while the interest rate for the medium-term to long-term deposits is 2.50% to 2.75% per annum.|
|Withdrawal||Depositors can withdraw their gold before the maturity of the deposit, subject to certain charges.|
|Conversion to gold||The deposited gold can be converted into gold bars or gold coins at the time of maturity, or it can be sold to the Reserve Bank of India.|
|Tax treatment||The interest earned on the deposits is taxable as per the prevailing income tax laws.|
Below are given eligibility criteria for Gold Monetisation Scheme:
- Any resident of India, including individuals, trusts, temples, and charitable institutions, can open a gold deposit account under the GMS.
- The minimum deposit amount is 30 grams of gold in any form, such as gold coins, bars, or jewelry.
Below is given application process for Gold Monetisation Scheme:
- Approach a bank or a collection and purity testing center (CPTC) authorized by the IBJA.
- Fill out the application form and provide proof of identity and address.
- The gold will be weighed and tested for purity at the CPTC.
- The depositor will be issued a receipt for the deposited gold.
- The depositor can choose the type of deposit (short-term or medium-term to long-term) and the mode of interest payment (monthly or cumulative).
- The depositor will receive an interest payment on a monthly or cumulative basis, as per their choice.
Gold Monetisation Scheme Benefits
The Gold Monetisation Scheme is a program launched by the Indian government in 2015 with the goal of reducing the country’s reliance on imported gold and utilizing the vast amount of gold held by households and temples in India. The scheme offers several potential benefits, including the following:
- Encouraging the domestic gold market: By providing a way for individuals and institutions to deposit their gold and earn interest on it, the Gold Monetisation Scheme can help promote the domestic gold market and reduce India’s reliance on imported gold.
- Boosting the economy: The gold deposited under the scheme can be used by banks to provide loans to businesses, which can help stimulate economic growth.
- Increasing the government’s gold reserves: The gold deposited under the scheme will be credited to the government’s gold reserves, which can be used to support the Indian economy in times of need.
- Providing additional income for depositors: The Gold Monetisation Scheme allows individuals and institutions to earn interest on their gold deposits, providing them with an additional source of income.
- Reducing the amount of idle gold in the economy: By providing a way for individuals and institutions to earn interest on their gold, the scheme can help reduce the amount of idle gold in the economy, which can lead to more efficient allocation of resources.
- AMRITPEX-2023 Music and Dance Quiz – Check out Right Here!
- Nano Quest Quiz Answers – Check out all The Correct Answers Right Here!
- Check out Shubharambh Quiz Answers to upscale your knowledge
Overall, the Gold Monetisation Scheme has the potential to provide a range of benefits for the Indian economy and the individuals and institutions participating in the program. By promoting the domestic gold market, boosting economic growth, and providing additional income for depositors, the scheme can help support India’s ongoing development.
Gold Monetisation Scheme Benefits FAQs
The Gold Monetisation Scheme is a program launched by the Indian government in 2015 with the aim of reducing the country’s reliance on imported gold and utilizing the vast amounts of gold held by households and temples in India. The scheme allows individuals and institutions to deposit their gold with banks and earn interest on it, while the gold deposited under the scheme is credited to the government’s gold reserves.
The Gold Monetisation Scheme is open to all individuals, Hindu Undivided Families (HUFs), trusts, charitable institutions, and other eligible entities that hold gold in the form of bars, coins, or jewelry.
Gold can be deposited under the scheme by taking it to a bank branch that is participating in the program. The bank will then assess the purity of the gold and calculate the amount that will be credited to the depositor’s account.
The interest rates offered under the Gold Monetisation Scheme vary depending on the type and duration of the deposit. For short-term deposits (up to 1 year), the interest rate is 2.25% per annum. For medium-term deposits (between 1 and 3 years), the interest rate is 2.50% per annum. For long-term deposits (over 3 years), the interest rate is 2.75% per annum.
Yes, the gold deposited under the scheme can be withdrawn by the depositor at any time, subject to certain conditions. The bank may require advance notice of the withdrawal and may impose penalties or charges for premature withdrawal. The gold may also be sold by the bank if the depositor fails to repay a loan taken against the deposited gold.