PM Narendra Modi has spilled the various colors from his end to make India dynamic and stand out without a leap. With his new initiative Narendra Modi is indeed set to bling the nation with Gold Monetization Scheme. On September 9, Cabinet approved Gold Bond and Gold Monetization schemes, Government announced the launch of Sovereign gold bond and gold monetization scheme to lure away Indians from buying physical gold. On November 5, ‘India gold coin’ bearing Ashok Chakra and other schemes will be launched by PM Narendra Modi.
Modi is set to launch Gold Monetization schemes and Sovereign Gold Bond schemes where he is all prepared to launch the Ashok Chakra bearing coins with 5 gms and 10 gms of gold. As gold is the prime asset for any household which may profit them in the near future, but consuming the same and storing them at home will not benefit the economy to grow. To foster this, these schemes will be launched to mobilize a part of 20,000 tonnes of idle gold lying in our lockers and houses. Even the gold in the temples also weighs in several tonnes which at one point respect the religious beliefs but the other way not aiding the economy any way out.
India ranks on a prime position in consuming gold, as people buy gold on all the auspicious occasions as it is considered a blessing they are welcoming home by buying gold. With this prospect, the lockers are piling up with gold ornaments and we are making it a treasure.
The sovereign gold bonds will be aiding investors to buy gold certificates from the government, and that can either be encashed with money or fresh gold. Gold bonds will be issued with a rate of interest to be decided by the government. Interest will be calculated on the value of gold deposited at the time of investment.
According to the government policies, the denomination value of gold will be in 5, 10 50,100 gms of gold. The cap per person perv year has been set up at 500 gms. The duration of such gold bonds will be for minimum of 5 to 7 years to protect investors from medium term volatility in gold prices
The coins will be mint by Security Printing and Minting Corporation. There will be 20,000 coins of 5 gms and 30,000 coins of 10 gms to get available. The rate will be cheaper than the market rates. However, redemptions of theses coins could be done from NBFC, post offices and banks.
The government is looking for monetizing gold and with a view to raise around Rs 15,000 crore with this initiative.