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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.

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Showing 566 Submission(s)
Sourav Adhikary
Sourav Adhikary 10 years 6 months ago
The outline lacks clarity in the following areas 1.Whether one can get the interest in cash (in terms of gold ) while retaining his principal amount gold in gold itself? If this is allowed it would be accommodative for customers who are not interested in converting their gold into money rightaway, but are ready to lend it to the banks, striking a balance between their preference and the true intent of the scheme.
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pankaj singhal
pankaj singhal 10 years 6 months ago
why not subsidize gold loan? say loan against gold for just for 3%. Than see how much gold will flow to the main stream economy.Even people with good financial backing will get there gold out. This will surely work.
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D Sampathkumar
D Sampathkumar 10 years 6 months ago
Pawn brokers and gold loan NBFCs must be compelled by law or RBI Regulations (in the case of NBFCs) that whenever they foreclose a gold loan of any borrower who has pledged his/her gold, the same must be routed through the assaying centre/refiner for the quantity of gold and sold to scheduled commercial banks or sold through recognised stock exchange and the proceeds be used to set off the outstanding dues and balance if any, be returnede to the borrowers.
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Sudhakar Krishnamachari
Sudhakar Krishnamachari 10 years 6 months ago
This is a great idea: * Move the pile of gold in individual custody, to a safer holding. Great way to unlock the potentially high economic value for circulation, out of, I would term, a dormant asset individually. * Link it to ability to hire back jewellery when required for occassions, I see no logical barriers thereafter. * Media reaching out to common people's psyche,remove fears of locking up/ losing their gold, will be important for its success.
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Jalaj Pawar
Jalaj Pawar 10 years 6 months ago
The jewellery be withdrawn any time to be taken in use by the customers without any changes be made in interest rates provided.
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Prakash Tripathy
Prakash Tripathy 10 years 6 months ago
#GMS: Testing of putity at the Assaying Center should be absolutely transparent, otherwise there will be room for controversy. Banks may fix the interest rate, but 1-2% interest may lead to failure of the scheme. Many temples are sitting over vast amount of gold. Temple managements may be convinced to part with a fraction of it for this scheme. Pragmatism should override sentiment.Gold seized by custom officials are sometimes stolen- either by outsiders/insiders, which may be used in the scheme.
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Navneet Malik
Navneet Malik 10 years 6 months ago
There will not be any tax on the monetary value of one gram of gold earned as interest. Nor would there be any capital gains tax on the redemption amount or gold received. In other words, if you had deposited 100 grams valued at Rs 2,500 a gram for one year at the end of which you get back the same gold valued now at Rs 2,600 a gram either in gold or in cash, the extra Rs 100 per gram will not attract capital gains tax. Why should an account holder choose upfront if they need cash or gold
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Gopal sureshbhai Galani
Gopal sureshbhai Galani 10 years 6 months ago
2% interstate in gold.....to hi public use karegi ye scheme .....IT janch nahi kargi to hi ye scheme success hogi modi sir
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JITENDRA KUMAR CHOPRA
JITENDRA KUMAR CHOPRA 10 years 6 months ago
One of the most important part of scheme are assaying centers & refineries who test the purity & melt the gold . Jewelers should allowed as refiners so that there experience of handling the process of melting & assaying the gold benefit the scheme in whole. And also it reduce the cost for building infrastructure for this scheme like Assaying centres , Hallmarking centres.
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