Gold Monetization Program

Gold Monetization Program - Background Context

The entities owned by Central and State Government can now deposit gold under the title “Gold Monetization Scheme”. This enabling came from the “Reserve Bank of India”. The non-profit or charitable trust and institution can also deposit their Gold Belongings or Gold as Asset the scheme under this scheme and earn interest in their deposits.

Gold Monetization Program

About the Gold Monetization Scheme

Soon after the NDA government came into power in year 2014, the Gold Monetization Scheme was initiated in year 2015. The primary objective of this scheme was to monetize all the gold which is inside the vaults of the Indian housewifes, individuals and banking institutions.

The key features of Gold Monetization scheme are as follows

  • Citizens of Republic of India can open Gold Saving Account and start depositing Physical Gold in appointed banks via CPTC’s and BIS certified collection.
  • Eligible Gold Deposit starts with minimum of 30 grams of can be deposit and has no upper limit.
  • Short term plan (01-03 years), Medium term plan (05-07 years) and Long term plan (12-15 years)
  • On maturity of these plans, the individuals may get the tangible gold or cash for short term deposits and only cash for the long term deposits.
  • The intended banks have agreements (tripartite/bipartite) with refineries and CPTC’s, the gold deposits made by citizens are send to refineries for testing the purity of the gold.
  • The depositing entity/parties to receive the interest of 2.25% to 2.50% on Gold deposits made for fixed period of time.

Important Links (External)

  1. Introduction of Gold Monetization Schemes.
  2. Gold Monetisation Scheme - Ministry of Finance.
  3. RBI amends Gold Monetisation Scheme to make it more attractive.

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