Govt mulls making gold schemes more attractive

It yields just 3 tonnes of yellow metal

Government is planning to make the gold monetisation scheme more attractive to people after a lukewarm response made it garner a meagre three tonnes of yellow metal from households.

“Some restructuring of gold monetisation scheme is possible shortly,” sources said after Economic Affairs Secretary Shaktikanta Das met Indian Bullion Association and jewellery representatives to discuss ways to make the scheme more attractive.

“In the long-term, the gold monetisation scheme should succeed. We reviewed the difficulties in the gold monetisation scheme and took suggestion and now they are under consideration,” Das told reporters.

He said, of late, temple trusts have started showing interest. Officials have admitted that the rate of return on the scheme is lower and that is the greatest impediment on the take off of the scheme launched by Prime Minister Narendra Modi late last year.

The government currently gives an interest rate of 2.5% on the gold monetisation scheme.

The scheme aims at bringing an estimated 22,000 tonnes of gold with household and temple vaults into productive use of economic development.

Meanwhile, the third tranche of Sovereign Gold Bond (SGB) scheme too received poor response, as the government data showed it got 1,128 kg gold, amounting to Rs 329 crore. This is less than half of what the government had got in the second tranche. The third tranche was opened from March 8-14.

As per initial figures, more than 64,000 applications have been received for a total subscription of 1,128 kilograms of gold amounting to Rs 329 crore, a Finance Ministry statement said.

Glittering gold

  Temple trusts across India are showing interest in schemes
  Gold monetisation scheme yields 2.5% interest rate per annum
  Government aims to bring an estimated 22,000 tonnes of gold
  The third tranche of Sovereign Gold Bond (SGB) scheme too received poor response