Gold Monetisation Scheme Rules: The government has changed its rules to make gold monetization scheme better and to increase participation in it. After the change, the government has also released new guidelines regarding the gold monetization scheme. As part of the new change, the government has asked all government banks to support the Gold Monetization Scheme. Also, jewelers are also being included in this scheme. He will be made an agent in the Gold Monetization Scheme. Experts say that while this move of the government will increase the interest of people in the gold monetization scheme, now it can prove to be a game changer about the economy.
What is gold monetization scheme
Under the Gold Monetization Scheme, you can make some income on the gold kept at home. Under this scheme, gold kept in the house can be deposited in the bank. On this, you pay 2.25 percent interest annually on the annual value of gold. Under this scheme you can deposit jewelery, gold coin or bar anything with the bank. The government started this scheme in 2015. Its purpose is to bring out the gold kept in homes and institutions (trusts) and make better use of it. In the medium term, gold can be stored for 5 to 7 years and for long term for 12 years.
Gamechanger for Economy
Ajay Kedia, director of Kedia Commodity, says that the purpose of gold monetization scheme is to make better use of gold kept in homes or trusts, which can be earned by the gold owner and also benefit the country’s economy. They say that under the new rules, all public sector banks have been asked to support the gold monetization scheme. At the same time, jewelers are being included in it and they will act like agents. Both these steps will prove to be a game changer for the country’s economy. With this, the objective of the government will be fulfilled and use of the lying gold can be used in the growth of the country. He said that according to a survey, 24 thousand to 25 thousand tons of gold is lying in India’s houses and trusts.
CAD control help
He said that when the huge amount of gold lying in the house comes out and reaches the banks, it will help India to reduce imports on gold. Reducing dependence on imports will help in controlling CAD (current account deficit) of the country. Explain that right now the import of gold is also a big reason for the current account deficit. Now the gold lying in people’s homes and temples will be used to enhance the economy.
What has happened
In the new guidelines of Gold Monetization Scheme, all government banks have been asked to participate in the Gold Monetization Scheme. At least one third branches of this banks will be made Gold Monetization Scheme Service Branch. Private banks have also been advised to participate.
Now a deposit of at least 10 grams will have to be kept under the Gold Monetization Scheme. Earlier it was 30 grams. There will be no upper limit for depositing gold under R-GMS. The portal for the process, app will be launched and SBI will be the custodian for MLRGD Gold.
Now R-GDS certificates will be tradable and transferable and jewelers will be made gold mobilization agents. According to the new guide lines, jewelers will do the work of purity check and collection. Banks and refiners will have to tie up with CPTC. Banks will get 1 percent commission and 1.5 percent handling charge.