Gold Monetization Program - Background Context
The entities owned by the Central and State governments 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.
About the Gold Monetization Scheme
Soon after the NDA government came into power in the year 2014, the Gold Monetization Scheme was initiated in the year 2015. The primary objective of this scheme was to monetize all the gold which is inside the vaults of the Indian housewife, individuals, and banking institutions.
The key features of the Gold Monetization scheme are as follows
- Citizens of the 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 a minimum of 30 grams of can be deposited 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 tangible gold or cash for short-term deposits and only cash for long-term deposits.
- The intended banks have agreements (tripartite/bipartite) with refineries and CPTCs, the gold deposits made by citizens are sent to refineries for testing the purity of the gold.
- The depositing entity/parties are to receive the interest of 2.25% to 2.50% on Gold deposits made for a fixed period of time.