Gold Monetization Scheme: Gold is considered the most precious metal in India. Many see this as a significant investment. Although not much gold is worn in everyday use, it is made into jewelry. Gold kept in the house is very dangerous in terms of security. So invest gold in bank and monetize your gold.
Gold Monetization Scheme
The security of gold in the bank locker is guaranteed. Also, interest can also be charged from banks on the deposited gold. All this is possible through the Gold Monetization Scheme. Punjab National Bank has given information about the benefits of this scheme launched in 2015.
Transforming India’s Gold Market
A Committee on ‘Transforming India’s Gold Market‘ was set up by NITI Aayog to recommend measures to harness the potential of this sector and provide impetus to exports, economic growth and employment.
Gold Monetization Scheme (GMS) launched by the Prime Minister of India
Gold Monetization Scheme (GMS) launched by the Prime Minister of India, aims to help investors earn interest on gold lying idle in bank lockers. The Gold Monetization Scheme works like a Gold Savings Account which will earn interest on the gold deposited by you based on the weight as well as the increase in the value of the gold.
What are the details of the scheme?
According to Punjab National Bank, customers can deposit their gold under this scheme. Consumers will get many benefits including security and interest income. A minimum of 10 grams of gold can be deposited in this scheme. There are three options for depositing gold in the Gold Monetization Scheme.
Short Term Bank Deposit -STBD
The tenure of Short Term Bank Deposit (STBD) is 1-3 years. At the same time, the tenure of medium term and long term deposits is 5-7 years and 12-15 years respectively.
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How much profit under the Gold Monetization Scheme?
In terms of interest under the Gold Monetization Scheme, the short-term deposits range from 0.50 per cent to 0.75 per cent per annum. 2.50% interest is available on long term deposits and 2.25% on medium term deposits.
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Under this scheme, banks will accept gold bars, coins, jewelry (except stones and other metals). Customers will also have to fill an application, ID proof, address proof and investment form.
Know Features of this Gold Scheme
- Accepts a minimum deposit of 30 grams in the form of a coin, bar or jewellery
- No maximum limit of investment.
- All designated commercial banks would be able to implement the Gold Monetization Scheme in India.
- Allows premature withdrawal after a minimum lock-in period.
- The short-term deposits offered
- Redeemed either in gold or in rupees at current rates applicable at the time of redemption.
- Invested gold by investors will be securely maintained by the bank.
What is the Benefits of Investing in Gold Monetization Scheme?
- Earn interest on their idle gold.
- This offers flexibility.
- Investment with as low as 30gm of gold.
- Coins and bars can earn interest apart from the appreciation of the value.
- Earnings are exempt from Capital gains tax in this scheme, income tax and wealth tax. There will be no Capital Gains tax on the appreciation in the value of gold deposited, or on the interest, you make from it.
The major recommendations of this committee deal with five focus areas. These are:
• Make in India in Gold
• Financialization of Gold
• Tax and Duty Structure
• Regulatory Infrastructure
• Skill Development & Technology Upgradation