Who: Three gold related schemes
Where: New Delhi
What: Launched by PM Narendra Modi
When: 5 November 2015
Why: To reduce dependence on imported gold
Prime Minister Narendra Modi on 5 November 2015 launched three gold related schemes. The schemes are – Gold Monetization Scheme, Sovereign Gold Bond Scheme and Indian Gold Coins.
The three schemes were announced by the Union Finance Minister Arun Jaitley in his 2015-16 budget speech in February 2015.
The primary purpose of the schemes is to reduce dependence on imported gold, recycle the unutilized gold in the country and most importantly, streamline the gold business in the country. At present, India is the largest consumer of gold in the world.
Gold Monetization Scheme (GMS)
Its objective is to mobilize unutilized gold from individuals, households and institutions and make them available to gold-base industries including jewellers.
Read more about Gold Monetization Scheme
overeign Gold Bond Scheme
The purpose of the scheme is to reduce the demand for physical gold and to shift part of the estimated 300 tons of physical bars and coins purchased every year for investment into Demat (Dematerialised) gold bonds.
Read more about Sovereign Gold Bond Scheme
Indian Gold Coins
• Its purpose is to revive investment and reduce dependence on imports of gold coins. At present, India has been importing about 60 tonnes of gold coins annually that are sold at a premium of 8-10 per cent.
• Under the scheme, gold coins bearing the Ashok Chakra will be minted by the Security Printing and Minting Corporation of India.
• Initially, the coins will be available in denominations of 5 gm and 10 gm.
• They will be sold through banks, post offices and state-run MMTC Ltd. (Metals and Minerals Trading Corporation of India) which will sell them through the World Gold Council (WGC).