Mumbai6 minutes ago
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The Government of India has closed parts of the Gold Monettion Scheme. In this scheme, deposits of gold kept in the house are available up to 2.50%. Gold can be deposited for 1 to 3 years, 5 to 7 years and 12 to 15 years in Gold Monettion Scheme.
The Finance Ministry said that the scheme of 5 to 7 and 12 to 15 years has been closed. The reason for the closure of the scheme has been explained the changing conditions of the market and the performance of the plan. The ministry said that banks can continue to offer short -term gold deposits.
What is Gold Monettion Scheme?
In 2015, the government started this scheme. In this scheme, you can earn up to 2.5% interest by depositing idol gold (such a gold that is not being used) in the bank. Under this scheme, the deposited gold is used by lending to the jewelers to use productive.
How many types of gold monetization scheme?
Gold is deposited in three ways in Gold Monettion Scheme:
1. Short Term Bank Deposit: You can deposit gold for 1-3 years. Gold is used to meet jewelers’ demand for temporary gold demand. At the end of the deposit period, depositors get gold back in the form of gold bars or coins with interest. SBI is paying annually up to 0.60% interest on this.
2. Medium Term Government Deposit: You can deposit gold for 5-7 years. Gold is used to meet the country’s domestic gold requirements. Interest rates are determined by the government and are amended from time to time. Till now, this scheme was getting an annual interest of 2.25%.
3. Long Term Government Deposit: You can deposit gold for 12-15 years. Gold is used to meet the country’s domestic gold requirements. Interest rates are determined by the government and are amended from time to time. Till now, this scheme was getting an annual interest of 2.50%.
How to take advantage of Gold Monettion Scheme?
- In the bank where this scheme is available, go and take gold. Gold should be 995 purity.
- The bank will verify gold details and will test the purity to determine its correct value.
- Once the gold is deposited, the bank will issue a gold deposit certificate, which will have details such as the deposit period and the applicable interest rate.
- During the deposit period, depositors will get interest on their gold deposits agreed.
- At the end of the deposit period, the depositor will get his gold coin or bar with interest.
- At least 10 grams of gold can be deposited. There is no limit of maximum deposit.
Why did the government start this scheme?
The aim of the Gold Monetisation Scheme is to use passive gold lying in the houses, institutions, corporations and temple trusts in the country. Through this, the government wants to reduce the country’s dependence on gold imports.
Benefits of Gold Monetization Scheme?
- For people: Earning and safety on passive gold (no need to keep at home).
- Currently saving locker charge used to keep gold.
- For the economy: Import is low, financial system is strong.
