New Gold Scheme May Allow Deposit as Low as 30 Grams

The Finance Ministry has uploaded the draft of the new Gold Monetisation Scheme in the public domain inviting comments and suggestions. Once approved, the scheme will allow gold deposit of even 30 grams. The scheme was announced during the annual budget and aims at monetising the approximately 20,000 tonnes of gold lying with Indian households.

The New Gold Scheme also aims to replace the currently existing Gold Deposit and Gold Metal Loan Schemes allowing depositors to earn interest on gold into their metal accounts and the jewelers to get loans using their metal accounts. On the lines of Kisan Vikas Patrika Scheme, where the funds were used to support farmers, the deposits from the Gold Monetisation Scheme are expected to help the gold traders, thus reducing their dependency on gold imports.

The draft of the New Gold Scheme currently uploaded in the public domain outlines the process for customers to participate in the scheme. The gold must undergo the Purity Testing process at any of the 350 Hallmarking Centres, where the gold will be tested, melted and deposited at the same place and certificate will be issued. Appropriate charges will be levied if the customer decides not to deposit the melted gold bars.

The minimum tenure of the gold scheme will one year with an option to increase the tenure. Tax exemptions on the lines of the Kisan Vikas Patrika Scheme are likely to be introduced.