UPSC Exam Preparation: Topic of the Day – Gold Monetisation Scheme
The Gold Monetisation Scheme was introduced in the Union Budget 2015- 16. The objective of the scheme was to safeguard the gold held in Indian households and also make productive use of it. It also aimed at cutting down the import of gold by decreasing the demand. The depositors earn interest on their metal accounts. Once the gold is deposited in the metal account, it will start earning interest on the same.
Following are the salient features of Gold Monetisation Scheme-
- Easy storage of gold: The Gold Monetisation Scheme offers security to gold by not only storing it. The owner would get returns in the form of money or gold when the plan matures
- Utility for Idle gold: The Gold Monetisation Scheme will not only earn interest money but also offers the option of encashing the gold at maturity which gives the advantage of the appreciating value of gold.
- Deposit Flexibility: Gold in any form of ornaments, jewellery coins or gold bars can be deposited under the Gold Monetisation Scheme. Deposits of gold encrusted with gemstones are not allowed.
- Flexibility in Quantity: The minimum deposit that can be made in a gold monetisation scheme is 30 grams of any purity. There is no maximum limit.
- Convenient tenures: There are 3 term deposit plans available Under the Gold Monetisation Scheme, which includes short-term tenure of 1 to 3 years. Only a nominal penalty is imposed if the deposit is withdrawn before the end of the tenure.
- Attractive interest rates: Depending upon the period of deposit, 0.5 to 2.5 per cent interest could be earned. Short-term deposit rates are decided by the banks concerned, while the medium and long deposit interest rates are decided by the Central Government.
- Variety in Interest Calculation: For short-term bank deposit under the Scheme does not calculate interest is given in the form of gold in grams.
- Tax Benefits: One does not have to pay capital gains tax on the profits made through the Gold Monetisation Scheme. The capital gains made from the Gold Monetisation Scheme are exempt from wealth tax and income tax.
Gold exchange is an international approach to managing gold more professionally and transparently. This surely will help the industry become more mature and digitally advanced, apart from removing intermediaries in the gold trade.
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