Thursday, May 21, 2015

FAQs on Gold Monetization Scheme

The Government has released the draft Gold Monetization Scheme (GMS). The main objective of the Scheme is to mobilize gold held by the households in lieu of interest and to make it available to the gems and jewellery sector as raw material on loan. This scheme aims at reducing reliance on import of gold to meet the domestic demand.

According to the draft scheme, a person can open a "gold savings account" in banks for a minimum period of one year and earn interest on the gold deposited under the scheme.

The minimum quantity of gold that a customer can deposit is proposed to be 30 grams. The gold can be in any form, i.e., bullion or jewellery.

The banks will pay interest on ‘Gold Savings Account’ after 30/60 days of account opening. The rate of interest is proposed to be decided by banks directly. Both principal and interest to be paid to the depositor shall be valued in terms of gold

Amount earned from “Gold Saving Account” under this scheme is likely to be exempted under Income-tax Act.

Click here to read FAQs on Gold Monetization Scheme

Click here to read the Gold Monetization Scheme