India to launch three new gold schemes tomorrow

By Anil Mathews (ScrapMonster Author)

November 04, 2015 07:42:37 AM

NEW DELHI (Scrap Monster): The Indian government has decided to launch three new gold schemes Thursday. The schemes will be launched by Prime Minister Narendra Modi. The schemes are launched with the intention to tap maximum customer response ahead of Dhanteras and Diwali. The three gold schemes to be launched are- gold bond scheme, gold monetization scheme and India gold coin scheme.

According to RBI, the issue price of the gold bonds has been fixed at Rs. 2,684 per gram. The scheme allows investors to buy a minimum of 2 grams and a maximum of 500 grams of gold during a fiscal year. The gold bonds will be available in demat format as well. The deposits will be paid interest every six months at a rate of 2.75% per annum based on the initial investment value. The bond’s maturity period is 8 years, whereas investors could exit the bond from fifth year onwards if needed. The first tranche of the gold bond scheme will be sold through banks and designated post offices. The scheme offers an alternative to buying physical gold

The first is a gold monetization scheme, where consumers will be invited to offer idle gold or jewellery for deposits with banks. 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. Designated 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.

The gold coins will come in 5 grams and 10grams weight and would have the face of Mahatma Gandhi and Asoka Chakra engraved on them. A 20 gram bar or bullion will also be available. These coins will be distributed through designated and recognized MMTC outlets.