Prime Minister ‘Narendra Modi’ launched the ambitious ‘India Gold Coin’ which engraves the 'Ashok Chakra' and 'Mahatma Gandhi' on both of sides of the coin; the other two schemes launched are Gold Monetization and Sovereign gold bond schemes.
India has surpassed China as the largest consumer of Gold and there is approximately 20,000 tonnes of gold (worth over $ 800 billion) lying idle inside the Indian households and temples. This move is aimed at reducing the imports of Golds in to India and also has better accountability of the Gold reserves with the Indian residents; the best part is that now you can turn your gold in to an interest generating asset.
The ‘India Gold Coin’ would be available in the denomination of 5 and 10 grams, there would also be 20 grams bar or bullion would be available. These coins would be distributed through designated and recognized outlets. Under the gold monetization scheme, banks will collect gold for a tenure of up to 15 years and pay an interest of approximately 2.25% - 2.5% per year. People can deposit a minimum of 30 grams of gold which may include bars, coins, jewelry but excluding stones or other metals, there is no maximum capping of investment.
The tenure of small,medium and long term deposit would be 1-3 years, 5-7 years and 10-12 years respectively. Also the deposits can be used as collateral for loans and the interest would be payable every 6 months. The new Gold Monetization scheme will replace the existing Gold Deposit Scheme (1999) however the existing deposits would be valid till maturity if people do not wish to withdraw them prematurely.
We really applaud this initiative.So this Diwali,Gold would no longer be only an appreciating asset but also generate interest for you.