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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.

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Showing 566 Submission(s)

Nikhil_18 11 years 2 months ago

1.Interest rates be aligned close to FD rates as the gold would be used as CRR (I understand this becomes like a double edge as banks would have to payout on inflation (gold appreciation) + Interest but since the lending rates of banks are now a days close to 16% in some cases it is also close to (Inflation + Interest)) 2.The interest can be paid as Cash (with options for payouts just like FDs) and redemption can be gold or cash 3.Option to purchase extra units/grams directly in the account

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Somnath Das 11 years 2 months ago

This is a very good idea and would be interested to look for good interest. However I would like to see a regulation in interest rates set by banks.

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SK Moinuddin 11 years 2 months ago

This is a welcome scheme, However the banks which offers loan by pledging gold, they do have their third party professional associates to weight and measure the purity of gold, the hallmark purity centre will be duplication of the same process; the government can permit the banks To act as ‘hallmark ‘purity agency’ for measuring and certifying gold and issuing certificates so that the patron can get one stop platform for Authentication and deposition of gold through this meaningful program.

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Arun Kumar_13 11 years 2 months ago

Banks will give you an idea of how the design of the customer's gold ornaments to give them the same. Because he had the aspirations of the Indian people to buy gold if it is something that your scheme will be a peer in the world will not.

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pankaj prakash jain 11 years 2 months ago

scheme is attractive from point of view of monetory benefits.. but from point of view of sentiments.. it will not work more..melting condition should not be there..they should accept gold as it is, in ornament form.. if this happens more people will opt for this scheme.. in indian culture, gold ornamnts have a big value/sentiments..

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VK Sharma_1 11 years 2 months ago

http://vksharmablog.blogspot.in/2015/05/gold-and-union-budget-2015-16-how-we.html Please see my views on the above link. I have cogently and convincingly argued why Monetisation Scheme will not achieve its purpose of reducing gold imports ! Also, making gold mobilised by banks as part of CRR is ostensibly counter intuitive and will be antithetical to monetary policy theory and practice as it will increase money supply precisely when the opposite is needed ! VK Sharma ED Retd RBI

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Rahul Sharma_42 11 years 2 months ago

I agree with Vishal Nischal, many people may not like to get their ornaments melted but the scheme is very nice. I would personally love to opt for it, unless there is a melting condition. I would like my gold/ornament back in it's original shape so I can wear that in future. Also, banks should not have the right to decide on interest %, because many people would prefer to bank with their existing bank for this gold scheme but their bank may have lower ROI, ROI should be governed by RBI or Govt.

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Vishal Nischal 11 years 2 months ago

I see a problem. .. no one wants to melts its ornaments to get some interest on it.. Suggestion: Involve retail jewellers and banks tieup with jewellers and both bank and jeweller make some money and both also have responsibility to the valuation. If we could work out this method we will have no melting of ornaments as jewellers with there experience can value it .. And in addition we will have big outlets to help the depositor. Note: No one will want his/her ornaments to be melted

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neeraj kumar_31 11 years 2 months ago

इस सोने को वेरिफ़ाई कैसे करेग़े? क्यों कि अाम पब्लिक को विश्वास दिलाना शुरुआत मे कठिन होगा. फिर इस का प्रचार इस प्रकार करना होगा कि अाम पब्लिक को इस स्कीम पर पूरा विश्वास हो जाये. इस के लिये माननीय प्रधान मन्त्री जी को स्वयं प्रचार करना होगा. वैसे योजना बहुत उत्तम है और देश के लिये बहुत अच्छी साबित होगी.

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sravan kumar 11 years 2 months ago

It is very good scheme if govt introduces this scheme with no income tax & capital-gain tax then lot of unaccounted tonns of gold will be deposited which help d govt the exact amount of gold present in India & d black money Wil also turns to gold..easily u can gain more than 20000 tonnes of gold if intrests of that scheme lies between 9% to 12% & also bring this scheme to all towns & not only d cities hope u will introduce d scheme & gain postivity in public & govt..thanks..#MyGov #GMS

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