Union Government launches Three Gold Schemes [ Current Affairs ]
About the launching of three gold schemes: Prime Minister Narendra Modi launched three gold schemes named Gold Monetization Scheme (GMS), Sovereign Gold Bond Scheme (SGBS) and Indian Gold Coins (IGC). These aspiring schemes were launched to reduce the physical demand for gold and seek out 20, 000 tonnes of the precious metal which are lying idle with households and institutions.
About Gold Monetization Scheme 2015:
- GMS 2015 will offer option to resident Indians to credit their expensive metal and can earn an interest on it.
- It will replace the existing Gold Deposit Scheme 1999.
- All residents can invest in this scheme but they will place open to Know Your Customer (KYC) Scheme.
- As per RBI, directives of all Scheduled Commercial Banks excluding Regional Rural Banks will implement GMS 2015.
- There is no maximum limit for the deposit.
About the Terms:
- Banks will accept gold deposits under the Short Term of Bank Deposit (STBD) of 1 - 3 years, Medium (5 - 7 years) and Long (12 - 15 years).
Principal and Interest of the deposit:
- Banks are free to fix the interest rates and it will be denominated in gold.
About Sovereign Gold Bond Scheme (SGBS) 2015:
- It seeks to shift part of physical gold in form of pieces and coins for investment into Demat means Dematerialized gold bonds in order to reduce the demand for physical gold.
- These gold bonds are interest bearing and it will be payable in terms of grams of gold.
- It will give 8 years of maximum contract.
- But there is exit option from 5th year can be used on interest payments dates.
- Published on: November 6, 2015