English language

Home | MyGov

Accessibility

Accessibility Tools

Color Adjustment

Text Size

Navigation Adjustment

Screen Reader iconScreen Reader

Economic Affairs

Sort By :

Share your views on Draft Gold Monetization Scheme

Start Date :

May 19, 2015

Last Date :

Jun 02, 2015

17:00 PM IST (GMT +5.30 Hrs)

Submission Closed

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement: “India is one of the largest consumers of gold in the world and imports as ...

The Finance Minister in his budget speech for the Union Budget 2015-16 made the following announcement: “India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of gold each year. Though stocks of gold in India are estimated to be over 20,000 tonnes, most of this gold is neither traded, nor monetized. Keeping this in view, the government in Budget 2015-16 has announced the Gold Monetization Scheme which will replace both the present Gold Deposit and Gold metal Loan Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this gold”.

Accordingly, a draft outline of the Scheme has been prepared. Comments and views are invited on the Draft Gold Monetization Scheme.

Draft Gold Monetization Scheme (The outline of the Gold Monetization Scheme placed below is only at the draft stage and is being placed here to obtain public opinion. The scheme as it stands at this stage, does not imply any commitment from the government)

The last date to share your views is 2nd June, 2015 by 5:00 p.m.

See Details Hide Details

All Comments

Reset

Showing 566 Submission(s)

KSHITIJ SANGHANI 10 years 6 months ago

Sir Excellent Decision to bring this scheme. You should really make this scheme a big Hit as its very necessary to utilize the gold lying idle in lockers or houses. The scheme will only work if High rate of interest is provided with minimum KYC for investors. A mere 2-3% interest will not help. This scheme is very imp to bring down the CAD problem faced by country since so many years. One more suggestion was to show the gold deposited under this scheme as Forex Reserves!!! Brilliant Idea

Like (0)

Dislike (0)

Report Spam

Muthoot Pappachan Group 10 years 6 months ago

The proposed GMS is a very positive and welcome initiative to bring out the idle/ unutilized gold into the formal financial system, thereby giving a long term direction to the Indian gold sector as well as help reduce India’s overdependence on gold imports. However pls find attached a few comments from our end which are very important to be considered in order to ensure the success of the proposed scheme

Feedback_Muthoot_Pappacha_Group.pdf

Like (1)

Dislike (0)

Report Spam

Comments (2)

Dhilip Thaneswar 10 years 6 months ago

Good Scheme for the cause of Nation Building. Would be happy to participate in this if 1) The Minimum Interest Rates are always governed only by Central Government 2) Only Government Banks are authorized to get into this Monetization or Reserve Bank Owns this Monetization Scheme 3) The Interest Paid Annually to the Monetized Gold is exempt from Income Tax, LTCG and STCG kind of Taxes and also same when the Gold is redeemed as Gold. 4) During redemption with Gold recertification for BIS

Like (0)

Dislike (0)

Report Spam

Sangeetha Subbiah 10 years 6 months ago

Understanding the psychology of Indian families is mandatory to make this scheme successful.Mostly gold ornaments are associated with dignity and is considered as status symbol too.Instead of considering gold from financial perspective,government should think from public perspective to make it successful.So if the people are expected to consider gold as metal only then there should be a proper value based campaigns conducted by gov.

Like (1)

Dislike (0)

Report Spam

Comments (1)

A Jaya sri gowri 10 years 6 months ago

Hello sir, GMS is very excellent idea. It will useful to middle class family for savings. No theft will be done in home.I wish you all the best for this scheme.

Like (1)

Dislike (0)

Report Spam

BALJIT SINGH 10 years 6 months ago

First of all, i would like to make it clear that everybody will not like to get his/her gold melted and then depositing it under GMS. As it is a well known fact that most of the people are from middle class and they get their gold items from parents or ancestors and they keep it for any hard time or for wearing in family occasions. So it would be difficult for them to get their items from bank if they get it melted and deposit in GMS. so the scheme will be a failure.

Like (1)

Dislike (0)

Report Spam

karthikeyan_40 10 years 6 months ago

Dear sir, Gms is really an excellent idea by our govt but the drawback is that, our jewels has been melted into gold this we don'T want. why because the wastage ,making charges, tax collected by jewelry was too high so kindly change that protocol. we heartily congrats our govt for its success in every action

Like (2)

Dislike (0)

Report Spam

Vinayak Meharwade 10 years 6 months ago

Dear Sir, Bullion Bulletin, a monthly magazine & consulting firm on precious metals conducted a survey and have presented the results in the below link: http://www.bullionbulletin.in/Reports/GMS Survey result_bullion bulletin.pdf Request you to kindly go through the feedback and opinion from the industry leaders. We are available for any further clarifications or details required to make this scheme a successful model.

GMSSurveyResult_bullionbulletin.pdf

Like (0)

Dislike (0)

Report Spam

C K Padma 10 years 6 months ago

GMS is a good thought by the Govt, to reduce the CAD due to the impact of gold imports, when so much of ideal gold is being held by the indian household, trusts, temples etc. By routing it to the banks for CRR, SLR provisions, and jewellers to take loans against their own jewellery can reduce the volume of gold imports and save us considerable foreign exchange reserves. Indirectly if this succeeds, the impact of rupee depreciating because of huge gold imports can also be avoided to a certain ext

Like (0)

Dislike (0)

Report Spam

Asokan Chakravarthy 10 years 6 months ago

Borrowings pledging gold should be at 6% interest rate. This will help household, micro, small, medium business from going to usurious money lenders. Many start ups fail due to this usurious interest rates. It will encourage enterprise and inclusive opportunity for every household has gold.

Like (0)

Dislike (0)

Report Spam