Highlights of Gold Scheme Launched By Prime Minister – Prime Minister Sri Modi has launched the three Gold Scheme on 05th Nov 2015 targeting the recent festival time.
The Three schemes which are launched by Mr Modi are :
- Gold Monetisation Scheme (GMS)
- Gold Sovereign Bond Scheme and
- Gold Coin and Bullion Scheme.
India is now among top countries who has issued the Gold coin which would be traded internationally. The minted Indian coin would emblem Ashoka Chakra. The specific features of GOLD COIN
- The coins will be available in denominations of 5 and 10 grams with 20 gram bar or bullion. About 15,000 coins of 5 gm, 20,000 coins of 10 gm and 3,750 gold bullions will be made available through MMTC outlets.
- The Indian Gold coin will carry advanced anti-counterfeit features and tamper proof packaging that will aid easy recycling.
- These coins will be distributed through designated and recognised MMTC outlets.
Features of Gold Monetisation Scheme
- Interest Rate on Gold Monetisation Scheme will be 2.50 per cent
- Interest rate on Medium and Long Term Government Deposit (MLTGD) are 2.25 per cent and 2.20 per cent, respectively.
- The tenor of medium term would be between 5-7 years while long term would for 12-15 years tenure.
- The deposit under MLTGD will be accepted by all the designated banks on behalf of the central government.
- Interest on deposits under the scheme will start accruing from the date of conversion of gold deposited into tradable gold bars after refinement or 30 days after the receipt of gold at the Collection and Purity Testing Centres (CPTC) or the bank’s designated branch, as the case may be and whichever is earlier.
- The amount incurred as interest under the scheme will be denominated in gold.
- The gold received under MLTGD will be auctioned by the agencies notified by the government and the sale proceeds will be credited to government’s account held with RBI.
- Reserve Bank of India will maintain the Gold Deposit Accounts denominated in gold in the name of the designated banks that will in turn hold sub-accounts of individual depositors
Sovereign Gold Bond
- Currently the public issue price of sovereign gold bonds at Rs 2,684 per gram which is fixed by RBI
- These bonds will be issued in denominations of 5, 10, 50 and 100 grams of gold
- The Bond will be issued on 26th Nov 2015. This will be accepted any banks or post office between November 5-20.
- Bonds can be used as collateral for loans.
- The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961) and the capital gains tax shall also remain same as in the case of physical gold. Bonds will be tradable on exchanges/NDS-OM from a date to be notified by RBI.
- The Bonds will be eligible for Statutory Liquidity Ratio(SLR). Commission for distribution shall be paid at the rate of 1% of the subscription amount.