GOVERNMENT OF INDIA
English language

Home | MyGov

Accessibility
Accessibility Tools
Color Adjustment
Text Size
Navigation Adjustment
Screen Reader iconScreen Reader
Menus
Sticky Menu

Share your views on Draft Gold Monetization Scheme

Share your views on Draft Gold Monetization Scheme
Start Date :
May 19, 2015
Last Date :
Jun 02, 2015
17:00 PM IST (GMT +5.30 Hrs)
Submission Closed

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement: “India is one of the largest consumers of gold in the world and imports as ...

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement: “India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of gold each year. Though stocks of gold in India are estimated to be over 20,000 tonnes, most of this gold is neither traded, nor monetized. Keeping this in view, the government in Budget 2015-16 has announced the Gold Monetization Scheme which will replace both the present Gold Deposit and Gold metal Loan Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this gold”.

Accordingly, a draft outline of the Scheme has been prepared. Comments and views are invited on the Draft Gold Monetization Scheme.

Draft Gold Monetization Scheme (The outline of the Gold Monetization Scheme placed below is only at the draft stage and is being placed here to obtain public opinion. The scheme as it stands at this stage, does not imply any commitment from the government)

The last date to share your views is 2nd June, 2015 by 5:00 p.m.

Reset
Showing 566 Submission(s)
Deepak Jacob
Deepak Jacob 11 years 1 month ago
Most feel it should be around five-six per cent to attract people.“Ideally the interest rate should be at least five per cent for the scheme to be attractive for customers. The earlier scheme too did not take-off because the interest rate was too low,” adds Mathur.
Dislike (0)
Reply
Report Spam
Deepak Jacob
Deepak Jacob 11 years 1 month ago
The government's ambitious gold deposit scheme can succeed only if depositors are paid a higher interest rate and banks are given more regulatory exemptions, Japanese brokerage Nomura said on Friday.At present, banks are offering an interest of up to 1 per cent on gold deposits and the same needs to be "much higher" for the new scheme to succeed, it said.
Dislike (0)
Reply
Report Spam
pradeep Shah
pradeep Shah 11 years 1 month ago
On 26-4-15 in his speech Maan Ki baat Respected PM Mr Narendra Damodardas Modi emphasized on MAYLA MATHE PE DHONA (carrying dirt on head). The phrase was headline in each and every NEWS of the day. Is He really concern about this and made provisions of reservation in LOK SABHA, RAJYA SABHA, STATE VIDHAN SABHA, MILITARY etc etc etc ...... Such reservations are in place in other aspects of life. Respected PM Mr NARENDRA DAMODARDAS MODI SIR do you have explanation or just a speech.
Dislike (0)
Reply
Report Spam
Yerram Raju Behara
Yerram Raju Behara 11 years 1 month ago
It is important that the scheme has to be made successful in the interest of growth. All the Temples and Trusts who get into their Hundis the gold should offload to the Banks through the GMS once in every quarter. For all types of such institutions, the lock-in period could be one year instead of two years for the individuals.Even if 5000 tons of gold is brought into GMS within six months, it provides huge resource for long term infrastructure investments. Price and product risk hedging decides.
Dislike (0)
Reply
Report Spam
Yerram Raju Behara
Yerram Raju Behara 11 years 1 month ago
There should be 100-150 centers for assaying, melting and hall marking in each notified city for the scheme and in centers like Chennai, Hyderabad, Coimbatore, Visakhapatnam, , Bengaluru, Mysore, etc . The charges for such purpose should not eat up the interest cost announced in the scheme. The interest should be attractive enough for the investor - the coupon rate should be 2.5% p.a. The lock-in period should be three years. RBI should prefix the hedging mechanisms.
Dislike (0)
Reply
Report Spam
Yerram Raju Behara
Yerram Raju Behara 11 years 1 month ago
The second: Convertible Gold Bonds under the GMS. Here, the costs of assaying, melting and hall marking has to be met up front by the Banks and not on reimbursable basis as the draft scheme no provided for. Since only 350 such centres are programmed by the scheme and it takes 5 hours for a customer to get the process completed it would mean that only 700 customers through out the country would be eligible to take the bonds under the option - cash or gold bar/coin at the time of maturity.
Dislike (0)
Reply
Report Spam
Yerram Raju Behara
Yerram Raju Behara 11 years 1 month ago
The Saas-bahu bonds can be used by the Banks for meeting the CRR and SLR requirements. Here the purity and valuations shall be as if it is a gold loan by the banks themselves and valuation acceptance rate for bond issue purpose shall be no more than 40% of the prevailing market rate.
Dislike (0)
Reply
Report Spam
Yerram Raju Behara
Yerram Raju Behara 11 years 1 month ago
The first scheme should wean away those who are using the safe deposit lockers and those who borrow on the security of jewelry for investment purposes. It is desirable to put in a lock-in period of two years for these type of clients and issue non-convertible gold saas-bahu bonds at a coupon rate of 2% p.a with a maturity period of ten years. Banks that issue these bonds should have enough safe storage systems and should provide for even verification of the ornaments by the clients annually.
Dislike (0)
Reply
Report Spam
Yerram Raju Behara
Yerram Raju Behara 11 years 1 month ago
60-65 percent of ornamental gold is in the South and most of it in rural and semi-urban areas. Gold jewelry is used as collateral security by the farmers - particularly, the small and marginal and leaseholders who are otherwise denied credit - to secure farm credit. The scheme has to have two windows: one for those who would like to avail it in as-is-where-is form and the other in convertible form either cash or gold bars.
Dislike (0)
Reply
Report Spam
shivansh kumar
shivansh kumar 11 years 1 month ago
here are following points which must be included in drafts- 1-Awareness compaign necessary for the gold monetisation scheme. 2-there is chance of conversion of black money into white, there should be provision for this 3-there is limit for quantity of gold 4-we know most jwellers are engaged in illegal practices of gold there must be certain provision to stop them.
Dislike (0)
Reply
Report Spam
Sticky Menu