Cabinet gives permission to gold bond and monetization schemes [ Current News (Concise) ]
About gold monetization scheme: In gold monetization scheme, people can deposit idle gold with authorized agencies. People can take advantage of the price growth of gold and can also earn interest on their deposit. About gold bond scheme: The Gold Bond scheme will have an annual limit of 500 grams per person and these bonds would be issued for a period of 5 - 7 years. Under this scheme, people can buy gold bonds instead of buying physical gold.
- Cabinet also going to launch Sovereign Gold Bond (SGB) scheme under the Budget 2015 - 16 to develop a financial asset as a replacement to gold.
- The bonds will be issued in 2, 5 and 10 grams of gold.
About permission to the scheme:
- The Cabinet approved Gold Bond and Gold Monetization schemes to reduce the metal’s demand in physical form and search out idle gold lying with households and other persons.
- This scheme was announced by Finance Minister Arun Jaitley. This both schemes are safer and economically more stable.
- Published on: September 10, 2015