India​ gold monetization scheme gets cold response from stakeholders

By Anil Mathews (ScrapMonster Author)
November 18, 2015 12:54:33 PM
The Indian Finance Ministry has decided to conduct a meeting of all stakeholders on Thursday, to discuss the cold response to the recently launched Gold Monetization Scheme.India's gold monetization scheme gets cold response from stakeholders
NEW DELHI (Scrap Monster): Even after two weeks of launch of the Gold Monetization Scheme, enquiries have not picked momentum, stated Indian Finance Ministry. Worried by the cold response to the scheme, the Ministry has decided to conduct a meeting of all stakeholders on Thursday. The meeting will be attended by representatives of banks, hallmarking centers and gold refineries in addition to Finance Ministry and Bureau of Indian Standards (BIS) officials.

Even though the Finance Ministry had earlier announced that the scheme will be launched with at least 100 active certified hallmarking centers, only around 40 such centers are currently active. The hallmarking centers indicated that the scheme has failed to evoke much of an interest and that enquiries about the scheme have not picked up for the scheme which was launched by the Indian Prime Minister on November 5th.

Meantime, banks have started receiving a few enquiries, sources said. However, the scheme is not being promoted by them as they await clarification from RBI and government on certain issues. It is under these circumstances that the Ministry has called upon a meeting of all stakeholders.

The gold monetization scheme allows individuals to deposit gold bars, coins, and jewelry without embedded stones. Resident Indians are allowed to make deposits under this scheme. The minimum deposit quantity would be 30 grams of 995 fineness raw gold, whereas there will be no maximum limit.

aDesignated BIS certified Collection and Purity Testing Centres (CPTC) are authorized to accept gold from customers. The scheme offers returns of up to 2.5% per annum on idle deposited gold. Deposits ranging from 5-7 years will be paid an interest rate of 2.25%, whereas long term deposits ranging from 12-15 years will be offered 2.20%. The accounts denominated in gold will be maintained by the Reserve Bank of India.