Press Esc to close
Thursday 27 July 2017
News updated at 12:47 PM IST

Chidambaram unveils measures to lure people from gold

New Delhi, Feb 28, 2013, (IANS): 15:51 IST
Finance Minister P. Chidambaram Thursday announced measures to encourage people to make productive investments in financial markets and housing, instead of just putting their money in gold.

“The household sector must be incentivised to save in financial instruments rather than buy gold,” Chidambaram said while presenting the national budget for 2013-14.

The finance minister announced liberalisation of the Rajiv Gandhi Equity Savings Scheme (RGESS), with a view to make it more attractive to the common people.

First time investors will now be allowed to invest in mutual funds as well as listed shares. This investment can be done not in one year alone, but in three successive years. The income limit is raised from Rs.10 lakh to Rs.12 lakh.

To protect savings and investments form inflation, Chidambaram announced the issue of inflation-indexed funds.

“In consultation with RBI, I propose to introduce instruments that will protect savings from inflation, especially the savings of the poor and middle classes,” the finance minister said.

These could be inflation-indexed bonds or inflation-indexed national security certificates.

“The structure and tenor of the instruments will be announced in due course,” he said.
Chidambaram also announced tax incentives to encourage investments in the housing sector.

He said any person taking a first time home loan up to Rs.25 lakh during the financial year 2013-14 will be allowed an additional tax deduction of interest of up to Rs.1 lakh.
“This will promote home ownership and give a fillip to a number of industries like steel, cement, brick, wood, glass etc, besides jobs to thousands of construction workers,” he said.

Go to Top

Photo Gallery
Bihar Chief Minister Nitish Kumar coming out of Raj Bhawan after meeting Governor KN Tripathi...

Bihar Chief Minister Nitish Kumar coming out of Raj Bhawan after meeting Governor KN Tripathi...

India's Cheteshwar Pujara, left, and Shikhar Dhawan cheer each others during the first day's play...

India's Cheteshwar Pujara, left, and Shikhar Dhawan cheer each others during the first day's play...

Army officers pay homage at the Dras War Memorial on the occasion of Kargil Vijay Diwas, in Dras...

Army officers pay homage at the Dras War Memorial on the occasion of Kargil Vijay Diwas, in Dras...

Indian Women's Cricket team poses for a group photo during a press conference in Mumbai...

Indian Women's Cricket team poses for a group photo during a press conference in Mumbai...

Actor Akshay Kumar at a function organised to celebrate Kargil War Victory Day at Yashwantrao...

Actor Akshay Kumar at a function organised to celebrate Kargil War Victory Day at Yashwantrao...

Sand artist Sudarsan Pattnaik creates five sand sculptures of A P J Abdul Kalam at Puri beach...

Sand artist Sudarsan Pattnaik creates five sand sculptures of A P J Abdul Kalam at Puri beach...

Anant Maheshwari, President, Microsoft India and Rajiv Kumar, Corporate Vice President...

Anant Maheshwari, President, Microsoft India and Rajiv Kumar, Corporate Vice President...

Former Jharkhand Chief Minister Madhu Koda is seen ploughing his field, in Ranchi on Wednesday...

Former Jharkhand Chief Minister Madhu Koda is seen ploughing his field, in Ranchi on Wednesday...

Children move to safer place from a flooded village at Thiba in Birbhum district of West-Bengal...

Children move to safer place from a flooded village at Thiba in Birbhum district of West-Bengal...

Water level rise above danger level in Sipu dam after heavy rains in Deesa on Wednesday...

Water level rise above danger level in Sipu dam after heavy rains in Deesa on Wednesday...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.