<div>The government is planning to launch the much-awaited gold monetisation scheme during Diwali in November. According to finance ministry sources, a cabinet note has already been sent to this effect. <br /><br />The scheme aims at reducing dependence on import of gold to meet the domestic demand and provide a fillip to the gems and jewellery sector in the country by making gold available as raw material on loan from the banks. <br /><br />The finance ministry expects the scheme to get cleared by the cabinet in a week or two. After the cabinet gives a nod, the Reserve Bank of India (RBI) will prepare guidelines for the gold monetisation scheme. <br /><br />The scheme will then be launched for depositors, who will earn interest on their gold account. It will initially be introduced only in selected cities. <br /><br />The scheme was announced in the Budget this year by Finance Minister Arun Jaitley. Under the proposed scheme, a person or entity would be allowed to deposit a minimum quantity of 30 grams of gold in any form, bullion or jewellery, for one year in a gold saving account. The banks will decide the interest rate.<br /><br />To make the scheme attractive to households, the interest earned on it will likely be exempt from income tax, wealth tax and capital gains tax.<br /><br />Before depositing gold into a metal account, customers will have to get its purity checked from the testing and collection centres certified by the Bureau of Indian Standards (BIS). They will be given a certificate by the collection centre certifying the amount and purity of the deposited gold.<br /><br />When the customer produces the certificate of gold deposited at the Purity Testing Centre, the bank will open a ‘Gold Savings Account’ for the customer.<br /><br />Under the scheme, both principal and interest to be paid to the depositors of gold, will be ‘valued’ in gold. For example, if a customer deposits 100 gram of gold and gets one percent interest, then, on maturity he has a credit of 101 gram.<br /><br />Customers will have the choice to take cash or gold on redemption, but the preference has to be stated at the time of deposit.<br /><br />The proposed scheme also seeks to benefit jewellers who can obtain loans in their metal account. Banks and other dealers would also be able to benefit from this scheme.<br /><br /></div>
<div>The government is planning to launch the much-awaited gold monetisation scheme during Diwali in November. According to finance ministry sources, a cabinet note has already been sent to this effect. <br /><br />The scheme aims at reducing dependence on import of gold to meet the domestic demand and provide a fillip to the gems and jewellery sector in the country by making gold available as raw material on loan from the banks. <br /><br />The finance ministry expects the scheme to get cleared by the cabinet in a week or two. After the cabinet gives a nod, the Reserve Bank of India (RBI) will prepare guidelines for the gold monetisation scheme. <br /><br />The scheme will then be launched for depositors, who will earn interest on their gold account. It will initially be introduced only in selected cities. <br /><br />The scheme was announced in the Budget this year by Finance Minister Arun Jaitley. Under the proposed scheme, a person or entity would be allowed to deposit a minimum quantity of 30 grams of gold in any form, bullion or jewellery, for one year in a gold saving account. The banks will decide the interest rate.<br /><br />To make the scheme attractive to households, the interest earned on it will likely be exempt from income tax, wealth tax and capital gains tax.<br /><br />Before depositing gold into a metal account, customers will have to get its purity checked from the testing and collection centres certified by the Bureau of Indian Standards (BIS). They will be given a certificate by the collection centre certifying the amount and purity of the deposited gold.<br /><br />When the customer produces the certificate of gold deposited at the Purity Testing Centre, the bank will open a ‘Gold Savings Account’ for the customer.<br /><br />Under the scheme, both principal and interest to be paid to the depositors of gold, will be ‘valued’ in gold. For example, if a customer deposits 100 gram of gold and gets one percent interest, then, on maturity he has a credit of 101 gram.<br /><br />Customers will have the choice to take cash or gold on redemption, but the preference has to be stated at the time of deposit.<br /><br />The proposed scheme also seeks to benefit jewellers who can obtain loans in their metal account. Banks and other dealers would also be able to benefit from this scheme.<br /><br /></div>
