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India’s Gold Coin: PM Modi launches 3 Gold Related Schemes

PM Narendra Modi today launched three gold related schemes and the country’s first ever gold coin namely Gold Monetisation Scheme (GMS), Sovereign Gold Bonds and Gold Coin and Bullion Scheme. The main objective behind this launch is to curb the increasing demands of the physical availability of gold in household.

Gold Monetisation Scheme (GMS):

  • GMS is created with the aim to attract physical gold from households into the banking system with the government providing an increasing interest rate of 2.5%.
Eligible metals to deposit Raw gold like bars, coins, jewelry
Ineligible Stones and other metals are excluded from it
Minimum Deposit 30 grams
Tenure of deposit Medium term- 5 to 7 years

Long term- 12-15 years

Interest Rate For Medium Term- 2.25%

For Long Term-2.20%

  • The principal and interest of the deposit under the scheme will be denominated in gold only.

For more details regarding GMS CLICK HERE.

Sovereign Gold Bonds:

  • Here, investors will get an option to buy gold bonds instead of buying physical form of gold which simply means that they can invest their money in bond which is backed by gold. The bond will be available both in demat (dematerialized a/c) as well as in paper form. The bond will be issued by RBI only.
Denomination 5, 10, 50 and 100 mainly
Availability of Bonds per person Minimum-2 grams per FY

Maximum-500 grams per FY

Fixed Price of Bonds ₹ 2,684 per gram

So, a minimum investment lies somewhere around ₹5,400 (₹2,684×2 gm= ₹5,368)

Application for Bonds: Deadline November 5th – 20th
Issuing Date 26th November
Interest Rate Individuals will get a fixed interest rate of 2.75% annually
  • TDS (Tax Deducted on Source) however will not be allotted on the interest part but whatever interest an investor will be earning on the bonds will be added to the income tax.

Gold coins:

Available Denomination- Gold Coin 5 and 10 grams
Available Denomination- Bullion (Gold Bar) 20 grams
Available Number of coin and bullion 15,000 coins of 5 gram

20,000 coins of 10 gram

3,750 bullions of 20 grams

Coins and bullions are available in MMTC (Metals and Minerals Trading Corporation of India) outlets
  • Also, these gold coins will have advanced anti-forgery feature as well as tamper proof protection to make it recycle easily. It will also bear the image of Ashok chakra.

Source: NDTV, Financial Express

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