Skip to main content

Gold Monetization scheme India- a way to avoid hassle of keeping physical gold

Seven FAQs on Gold Monetization Scheme 1. What kind of gold can be deposited under the scheme? What is the minimum and maximum quantity which can be deposited? Gold in any form, bullion or jewelry can be deposited. However jewelry with embedded stones are not be accepted. The minimum amount of gold which will be accepted as a deposit is 30 grams of 995 fineness. There is no upper limit for deposition. 2. What will be the tenure of deposit? The tenure for deposit has been distributed into three term plans which are as follows: i. Short term: 1 to 3 years ii. Medium term: 5 to 7 years iii. Long term: 12 to 15 years The investor will be allowed to break the deposit during the lock-in period by paying a penalty for premature withdrawal. 3. What will be the interest rate payable on the deposit? Initially it was proposed that the amount of interest rate payable for deposits made for the short-term period would be decided by banks and would be denominated in grams of gold. For the medium and long-term deposits, the rate of interest (and fees to be paid to the bank for their services) will be decided by the government, in consultation with the RBI from time to time. The interest rate for the medium and long-term deposits will be denominated and payable in rupees, based on the value of gold deposited. As of now the rate of interest is 2.25 per cent on the current price of gold for the short term and 2.5 percent for the medium and long term deposits. The interest is taxable. 4. Who is eligible to deposit under the gold monetization scheme? Is joint deposit allowed? Deposits can be made by residents of India, HUFs', mutual funds and exchange trading funds registered under SEBI. Yes, joint deposits are allowed with a minimum of two holders with no cap on the maximum number. 5. Where can the deposit be made? The deposit of gold can be made at any scheduled bank as per the list of scheduled banks under the Reserve Bank of India. 6. How will the authenticity of the gold be verified? A total of 331 Assaying and Hallmarking Centers', spread across various parts of the country, which meet criteria as specified by Bureau of Indian Standards (BIS) have been enlisted by the government. These centers have been entrusted with the task of Collection and testing for purity of gold, for the purpose of this scheme. 7. How to open an account for gold monetization? Individuals willing to open a gold deposit account have to do so with a scheduled bank as listed under RBI guidelines. The nature of the account would be similar to normal zero balance saving bank accounts. The documents which are required to open the account are also the same as those required for any savings bank account opening viz. customer (KYC) form along with valid address proof, ID proof and passport size photograph.

The RBI, in Jan 2016, made a few amendments to its Master Direction on the scheme.
"The depositors will be able to withdraw medium term and long term government deposits pre-maturely after the minimum lock-in period of three years in the case of medium term deposits and after five years in the case of long term deposits," it said. However, there will be penalty in the "form of lower rate of interest for premature withdrawals" depending upon the actual period for which the deposit has run.

Ref:
http://www.moneycontrol.com/news/commodity/7-things-to-know-aboutgold-monetization-scheme_5726761.html

http://profit.ndtv.com/news/industries/article-gold-monetisation-scheme-premature-withdrawal-allowed-by-rbi-1268601

Comments

Post a Comment

Popular posts from this blog

Best IELTS and English language training institutions in Hyderabad

IELTS stands for International English Language Testing System. As the name implies it is basically an English test for testing the proficiency of the language in an individual.  Training for IELTS can be taken to pass the IELTS exam or to develop good english language skills. I am giving the training institute addresses for Hyderabad. The test system is jointly managed by the British Council,IDP education ltd and University of Cambridge ESOL Examinations and more than 1 million candidates are taking the exam all over the world. The test has two versions : 1. Academic 2. General training Academic  version is for people who plan to continue their higher education by enrolling in universities in countries like US,UK,Australia,Canada,New Zealand etc.The academic institutions in these countries consider the IELTS score as a criteria for the admission process. General training is mostly for immigration purposes in countries like Australia,New Zealand,Canada etc. It may ...
9 comments
Read more

Communist party launches 'China Operating System' to oust iOS and Android

hina officials have launched a national operating system in an attempt to take back control of the country’s computer market from American companies such as Google and Apple. The software has been in development for more than a year, but has been released at a crucial time with revelations about US-led surveillance sparking fears over the integrity of American-designed software. Known simply as the China Operating System, or COS, the software can run on PCs, tablets and smartphones and has been based on the open-source Linux operating system. Chinese media say that the OS has been created “entirely independently” in order to provide better localization for a range of features – from Chinese-language keyboards, to integration with the country’s banks. At the launch of the event, one of the developers involved with the project reportedly criticized Western software , saying that Apple’s iOS was too closed, that Google’s Android OS suffered from fragmentation (ie, too many versi...
Post a Comment
Read more

How to use home loans most effectively for tax benefits

1) Deduction on interest: If you are paying EMIs for a home loan you took to buy a house, the interest component in the EMI can be claimed as deduction. You must be both an owner and a co-borrower (in the loan) to claim tax benefits. This deduction can be claimed starting the year in which the construction of the house is completed. Suppose the construction of your house was completed on August 30, 2014, you can claim deduction for interest for the entire 12 months in financial year 2014-15. So every year a maximum of Rs. 2 lakh can be claimed for a house that you use for your own residence. If your house is rented, the entire interest for the year can be claimed as deduction. The interest payments for the year shall result in a loss under the head 'income from house property'. This loss can be adjusted against in the same year against other heads of income in your income tax return including salary. Therefore, it reduces your total taxable income and the tax you pay thereon. A...
2 comments
Read more