GOLD MONETIZATION SCHEME even a small percentage of this mostly-unused

gold reserve will significantly to reduce India’s

gold import. It will boost up Indian economy
when more money will be available in market

Eligibility Criteria for gold

Monetization:
 Individuals – singly or jointly
 HUFs (Hindu Undivided Families)
 Trusts like Mutual funds/
Exchange Traded funds registered
Earn, while you secure. under SEBI
 Proprietorship& Partnership firms
The Gold Monetization Scheme was launched  Charitable institutions
by the Prime Minister Narenda Modi on 5th  Central government, state
November. It is a great opportunity for big
government or other entity owned
Indian households to make profits from the old
by the central government or the
jewelry lying in lockers .This new gold
state government.
scheme may be a modification of the
prevailing Gold Deposit Scheme (GDS) and Gold
Metal Loan Scheme (GML), and it
might replace the prevailing Gold Deposit What investor required to
Scheme, 1999. Deposits?
What is Gold Monetization Under the scheme minimum deposits to be
Scheme? made at a time are going to be 30 grams of raw
gold (bars, coins,) like 30 grams of gold of 995
The Gold Monetization Scheme is a savings fineness.
account for gold. Here you deposit your gold
with the bank and therefore the corresponding How to invest?
value of gold gets credited to your account. On
this account you can furthermore may earn
interest along aside the capital appreciation
that comes with the change in price of gold.

Why GMS?
The aim to launched a schemes were to scale
back the physical demand for gold and fish out
20,000 tonnes of the valuable metal lying idle
with households and institutions .The aim of
this scheme is to allow you to earns some
regular interest on your gold and save you from
 To register under the gold monetization
carrying cost .Indian household & institutions
scheme, you need to visit the
hold nearly 20,000 tons of gold .Mobilization
 authorised Purity Testing centre near
your location. It is crucial to get your
assets tested at the PTC, which will
issue you the certificate about the value
of your gold.
 After getting the certificate from the
authorised PTC
 Investor need to approach a bank to
open a gold saving account
 Assaying centers will inform back the
value of gold & then bank will credited
that value in the Gold saving accounts
of the investor
 Bank will send the collected gold to
refineries melted gold & store them in
form of bricks
 Investor have to  pay service charges to
banks like gold purity testing charges,
refining, storage and transportation
charges etc. for Medium and Long-term
Deposits. Large depositors can also
prefer to directly deposit it with
refiners.
Types of Deposits:
The banks will accept three types of gold
deposits such as:
The Short Term Bank Deposit (1-3 years)
Medium Term Government Deposit Schemes
(5-7 years)
Long-Term Government Deposit Schemes
(12-15 years)
Interest Income
STBD: The current interest rates are as under:
For 1 year : 0.50% p.a.
Above 1 year - 2 years: 0.55% p.a.
Above 2 years- 3 years : 0.60% p.a.
The interest earned on these deposits will be
decided by the Central
MTGD: 2.25% p.a.
LTGD: 2.50% p.a.
How bank utilize accumulated
gold?
Lending to jewelers
Invite foreign currency inflow
Use gold to meet CRR & SLR Require
Pros of Gold Monetization
Scheme
 Income from gold certificate scheme is
exempt from tax
 No need to fear of loss of theft
 Generate regular income from Gold, at
the same time get the benefit of regular
increases in price of gold
 Save tax as there is no tax on capital
gains.
Cons of Gold Monetization Scheme
 Interest rate for gold scheme
is too low
 Investor can’t get back the
original model of gold
jewelery
 The money investor invested
in gold jewelery , if it is kept
in fixed deposit , would have
fetched investor more returns
How the gold monetisation
help to decrease import of
gold?
People can keep their gold in any form,
jewellery, bars, etc. Gold monetization does not
directly reduces import of gold but instead, it
brings into the money flow the gold deposits
that are kept with households. Gold kept in the
form of jewellery or savings at one's place does
not yield any economic value. And India has a
great demand for consumption purpose gold,
thus puts pressure on BoP account. Inviting
people to save their gold with banks will allow
the government to bring this hoarded gold to
economic use. Thus, indirectly reducing the
demand for imports, as some demand can be
fufilled through using these gold savings.