I just came to know about this term called gold monetization scheme & thought that it can be a part of this blog as it is also a kind of a money making activity for Indians. As most of the traffic is from India I wanted to write about it & hence writing on it for you to understand it properly.
What is Gold Monetization Scheme ?
On 5th November, 2015 the Gold Monetization Scheme was launched by the Prime Minister of India, Mr. Narenda Modi. It is there to help you earn an interest on your unused gold lying idle in bank lockers. It is a new deposit method to turn gold into an everlasting asset in India. Actually, it is a modification of the existing Gold Deposit Scheme (GDS) and Gold Metal Loan Scheme (GML), and it would replace the existing Gold Deposit Scheme, 1999.
More Points on the Gold Monetizing Scheme
- All residents Indians can invest in this new Gold Monetization Scheme. 2015.
- The scheme accepts a minimum deposit of 30gm of raw gold in the form of a bar, coin or jewelry.
- There is no maximum limit of investment under this scheme.
- The scheme allows premature withdrawal after a minimum lock-in period. However, it charges penalty for such withdrawals.
- All designated commercial banks would be able to implement the Gold Monetization Scheme in India.
- The scheme would offer interest at 2.50% per year which is higher than previous rates offered on gold investments.
- The short term deposits offered by Gold Monetization Scheme can be redeemed in either gold or in rupees at current rates applicable at the time of redemption.
- A portion of the gold collected through the Gold Monetization Scheme can be sold or lent to MMTC and RBI for minting of gold coins and sale. Thus, the gold deposited through this scheme will be re-circulated in the country to help reduce gold imports. Gold being the most precious asset of the country, the Government of India aims to use it for the purpose of nation building and strengthen the country’s economy
- The scheme allows withdrawal of your investments. You can withdraw your gold after completing the minimum lock-in period
- The rate of interest offered by the scheme ranges from 2.25% to 2.50% per year.
- Three deposit schemes are available under the Gold Monetization Scheme which include – Short Term Bank Deposits (SRBD) and Medium and Long Term Government Deposits (MLTGD).
- The tenure of a Short Term Bank Deposits is 1-3 years.
- You can invest in a Medium Deposit for a period of 5 to 7 years.
- You can invest in a Long Term Deposit for 14 years. The Gold Monetization Scheme offers Long Term Deposits for a period of 12 to 15 years.
Benefits of this scheme
- You can earn a good amount of an interest which will be of some value added.
- It will be beneficial for the country because it will decrease import of Gold.
- It is very flexible as you can withdraw your investment anytime.
- Starting can be done by an investment of 30 gm Gold only.
Leave your esteemed comments on this scheme & share your experience if you have invested in it.