Gold monetisation, sovereign gold bond schemes in Nov

In continuation of Narendra Modi government policy to discourage gold imports, there are two schemes going to come in to effect from next month. As Economic affairs secretary Shaktikanta Das says, ‘There are two schemes - Gold monetisation and Sovereign gold bond. We are working out the details. We have had our meetings with the Reserve Bank. Both the schemes will be launched in November.’

He further elaborated that government will very soon issue gold coins with Ashok Chakra symbol, which will also help curb the demand of imported coins.“Action has already been taken by MMTC and date will be shortly announced. Very soon it will be released,” continues Das.

It may be recalled that the decision to issue Indian gold coins follows an announcement made by Finance Minister Arun Jaitley in his Budget speech.

In this scheme of Gold Monetisation, gold in any form can be deposited with banks for a period of 1-15 years that will earn interest while redemption will be at the prevailing value at the end of the tenure.

As far as sovereign gold bonds are concerned, those are aimed at people buying the precious metal as an investment. Such bonds will be issued in denominations of 5 grams, 10 grams, 50 grams and 100 grams for 5-7 years with a rate of interest to be calculated on the value of the metal at the time of investment.

But, there will be a cap of 500 grams that a person can purchase in a year. Such bonds will be offered to only Indian citizens and institution while the securities will be traded on exchanges to allow early exit for investors. Through these measures, the government expects to raise Rs. 15,000 crore through the gold bonds in the current fiscal.