Let’s Make India a Golden Bird Again: Launch of”Indian Gold Coin” and Other Schemes
November 5, 2015 has been evident to one event occur to introduce first ever Indian gold coin in India after freedom. Narendra Modi on the path of dedicating first gold coin, which will have Ashok Chakra emblem engraved, addressed the event on the strengthening of financial inclusion.
PM also launched two gold schemes. Before Deepawali, PM gifted this present to 125crore people of India. Since buying Gold in India is a celebration, so we believe to purchase this precious metal on the occasions like festivals and marriages is our tradition. India celebrates their ancient ritual of buying gold and silver on Dhanvantri Jayanti (Dhan Teras) two days prior Deepawali, PM Modi tried to allure customers to in cash these schemes on the auspicious day.
This event mainly held 3 schemes related to gold purchasing, usage and benefits. PM addressed the event by explaining the benefits of these schemes of Gold Monetization program. Let’s understand the details of these schemes:
Indian Gold Coin:
As announced earlier PM Modi launched Indian Gold Coin which is first national gold coin having our national emblem Ashok Chakra on one side of coin. The other side will have face of Mahatma Gandhi. In starting these gold coins will be available on the denominations of 5 gm and 10gm. 20gm gold bar will be available later on. Around 15,000 gold coins which weigh 5 gm, 20,000 gold coins which weigh 10gm and 3750 gold bullions and bar will be made available through MMTC outlets.
This coin would be unique in features like advanced anti counterfeit and temper proof packaging. Coin will have salient features of purity (24 karat purity and 999 fineness) and hallmark as per the BIS standards.
A moment of pride… launch of India Gold Coins, bearing the Ashok Chakra. pic.twitter.com/vlY9bErzaU
— Narendra Modi (@narendramodi) November 5, 2015
Gold Monetization Scheme:
Government aims to utilize the 20,000 tones idle gold worth rupees of 5, 40,000 crore to bring it in the flowing economy of banking system to minimize the import of gold. How this scheme will benefit the consumers can be explained with these points:
- Any resident Indian can be the beneficiary of this scheme by depositing their idle gold into the banking system.
- Under this scheme customer can deposit minimum 30 gm of raw gold in form of bars, jewelry, coins excluding stones and other metals.
- Gold should be of 995 fineness and would be accepted at the Collection and Purity Testing centres which are certified by BIS (Bureau of Indian Standards).
- Gold monetization scheme would give you 2.50 percent interest rate on your idle gold.
- In Medium and Long term Government deposit, interest rates would be 2.25 and 2.20 percent respectively.
- Tenure of medium term is 5-7 years and for long term its 12-15 years.
- Any bank which will be designated by the central government can made available these services.
- Interest on these gold depositions will start after the conversion of this gold into the tradable gold bars after refinement or 30 days after the receipt of gold at the CPTC or designated bank, whichever is earlier.
- Principal and interest both will be denominated in gold.
- Gold under schemes of medium and long term will be auctioned by agencies notified from government and sale proceeds will be credited to government account held n 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 Bonds:
As an alternative to the gold, people can buy these sovereign bonds which are backed by gold. Investor can buy them in the form of demat or paper form. Gold bonds will have more or equal advantage as compare to physical gold.
- These bonds will be issued by RBI.
- This scheme is also for the resident Indians.
- Maximum limit is 500 gm per person per year.
- Price of sovereign bonds is fixed by RBI which is Rs. 2684 per gram.
- These bonds are available in the denomination of 5, 10, 50 and 100 gms of gold.
- Applications are invited from November 5 to 20th. Bonds will be issued on 26th November 2015.
- Designated banks and post offices are authorized to sell these bonds as per notifications.
- The borrowing through issuance of Bond will form part of market borrowing program of Government.
- These bonds can also be used as collateral for loans. The LTV Loan to value ratio would be equal to ordinary gold loan.
- Same as buying physical gold, KYC norms are same. Voter card, Aadhar card, PAN or TAN/ Passport will be required.
- The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961).
- 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.
Thus, these Gold Monetization Schemes are launched for increasing the inflow of gold into the system to curtail the dependency of gold import. Narendra Modi emphasizes on Make in India which will play down the dependency of economy over others instead of accessible physical idle gold within the country itself. So on this Deepawali instead of buying other gold coins, be a proud Indian and bring our national Indian gold coin to our home. Our contribution is one necessary ingredient for changing the picture of our India, Future India.0