Gold Monetisation Scheme (GMS).

– Why Govt. announced this scheme:

Goal:

Gold lying in the locker appreciates in value if gold price goes up but it doesn’t pay you a regular interest or dividend. On the contrary, you incur carrying costs on it (bank locker charges).
The monetisation scheme will allow you to earn some regular interest on your gold and save you carrying costs as well. It is a gold savings account which will earn interest for the gold that you deposit in it.

Scheme tagline: ‘Earn, while you secure’.
Types of deposits under Gold Monetisation Scheme (GMS)
There shall be two different gold deposit schemes as under:

• Short Term Bank Deposit (STBD): Under this scheme, deposit will be made with the designated banks for period of 1-3 years with a roll over in multiples of one year.rate of Interest will be decided by Individual Banks.

• Medium and Long Term Government Deposit (MLTGD): Under this scheme, deposit can be made for a medium term period of 5-7 years or a long term period of 12-15 years. The rate of interest of deposit will be decided by Central Government and notified by Reserve Bank of India from time to time.

For 5-7 years rate of Interest offered is 2.25% and for 12-15% is 2.50%.

Minimum tenure for invest is 1year and maximum tenure is 15years.
The minimum deposit at one time should be 30 grams of 995 fineness of raw gold (bars, coins, jewellery excluding stones and other metals).There is no maximum limit for deposit under this scheme.
No Tax: Earnings are exempt from capital gains tax, wealth tax and income tax. There will be no capital gains tax on the appreciation in the value of gold deposited, or on the interest you make from it.
All Scheduled Commercial Banks excluding RRBs will be eligible to implement the Scheme. The principal and interest of the deposit under the scheme shall be denominated in gold.
You get back your gold in the equivalent of 995 fineness gold or Indian rupees as you desire (the option to be exercised at the time of deposit).
The gold monetisation scheme earns interest for your gold jewellery lying in your locker. Broken jewellery or jewellery that you don’t want to wear can earn interest for you in gold.
Gold Monetisation Scheme (GMS), which modifies the existing Gold Deposit Scheme (GDS) and Gold Metal Loan Scheme (GML).
Under this scheme, it is important to check the gold’s purity. This purity check will be done through collection and Purity Testing Centres (CPTC). Collection and Purity Testing Centres (CPTC) are collection and evaluating centres certified by the Bureau of Indian Standards (BIS) and notified by the Central Government for the purpose of handling gold deposited and redeemed under GMS.