GOVERNMENT OF INDIA
English language

Home | MyGov

Accessibility
Accessibility Tools
Color Adjustment
Text Size
Navigation Adjustment
Screen Reader iconScreen Reader
Menus
Sticky Menu

Share your views on Draft Gold Monetization Scheme

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.

Reset
Showing 566 Submission(s)
Sanjeev Agrawal
Sanjeev Agrawal 10 years 11 months ago
The interest rate on deposited gold shud not entirely be determined by banks. Just like there is a min interest rate for savings accounts, the policy should define a minimum interest rate. Banks can choose to offer a rate more than the minimum.
Dislike (0)
Reply
Report Spam
Ravishankar Ramamurthy
Ravishankar Ramamurthy 10 years 11 months ago
The return on Gold should be linked to lets say a gold index or in general a consumer price index and thus linked with inflation. 2) Like FD, the returns should reduce when the gold is withdrawn in between. 3) People can avail loan on the gold deposited as well as use it as collateral and transfer gold to other people. #DraftGoldMonetizationScheme
Dislike (0)
Reply
Report Spam
JUGAL KISHORE KYAL
JUGAL KISHORE KYAL 10 years 11 months ago
1) Depositor should get their jwellerry back for their own use for occasions like mairraige, deepawali etc. with 7 day prior notice. 2) fURTHER SEVEN DAY BE AALOWED TH RETURN THAT GOLD WITH BANKS 3) INTEREST SHOULD BE ALLOWED DURING AFORESAID PERIODS IN A YEAR WITH A RESTRICTION FOR MAXIMUM OF 90 DAYS
Dislike (0)
Reply
Report Spam
KIRTI MODI
KIRTI MODI 10 years 11 months ago
1] minimum gold to be deposited in this scheme should be 10 grams. 2] the investor should not be asked to state his/her preference of receiving interest in cash or gold at the beginning of the scheme. 3] no bills/invoices of purchase of gold should be demanded from the investor. 4] investor should be given freedom to prematurely redeem his/her gold deposit subject to certain conditions.
Dislike (0)
Reply
Report Spam
Ashok Minawala
Ashok Minawala 10 years 11 months ago
In nearly most the cases, there are no documentation done between the giver and the receiver and as such for the receiver who holds the gold today to bring evidence of ownership will be an extremely difficult job. As such considering Indian traditions, we feel that the limit of 500 grams which is streedhan is an extremely reasonable level to keep it as a threshold per individual. This limit is also well within the threshold kept for Wealth Tax purposes. This will be the game changer for Govt.
Dislike (0)
Reply
Report Spam
Ashok Minawala
Ashok Minawala 10 years 11 months ago
It does not mean that all persons presently making cash payments are immune to the regulatory liability. They still have to explain the source of their investments if asked during assessment proceedings. In the case of gold and Jewellery, as the same is handed over through generations by parents or grandparents to their children.
Dislike (0)
Reply
Report Spam
Ashok Minawala
Ashok Minawala 10 years 11 months ago
In seeking immunity for a 500 gms limit, Industry body GJF is only requesting for a benefit similar to what is already existing in the financial sector where any person can make a cash deposit in a bank or make investment in mutual fund or purchase shares or purchase a postal savings scheme certificate or pay premium for a life insurance policy up to a threshold limit without being insisted upon to provide a PAN no and other KYC documents.
Dislike (0)
Reply
Report Spam
Ashok Minawala
Ashok Minawala 10 years 11 months ago
Even if gold has a very good ROI and a solid safety latch attached along the past GDS failed to attract most individual depositors because it did not offer a good ROI and did not offer any exemptions to depositors. Also none of the Banks marketed this plan to the consumers. We should not plan to fail again.
Dislike (0)
Reply
Report Spam
Ashok Minawala
Ashok Minawala 10 years 11 months ago
We just cannot have a plan that befits Banks or Govt. We need a plan that is practical. If I had a property which I wanted to give on lease I would not settle below 50% of the general interest I would receive from Banks. Similarly a depositor would only part with his gold if he received a return that would match such a concept. It would be most ideal if a general survey was done to get the best results.
Dislike (0)
Reply
Report Spam
Sticky Menu