Gold Monetization Scheme
Gold Monetization Scheme

Gold Monetization Scheme is one of the best government-operated schemes to date. This scheme will bring back the gold into the main economy which is worthless in the lockers. This will ascend the throne of its predecessor scheme Swarna Jama yojana. This is a really appreciating step by the central government. So let’s take a brief look at it.

Table of Contents

Gold Monetization Scheme

This scheme is started for bringing back inactive gold into the mainstream of the economy. This will help in decreasing the import of gold. You can start this with a minimum of a 30-gram gold deposit in this scheme’s account. In exchange for it, the bank will give you the interest.

The rules for this gold deposit account are the same as a normal bank account. Under this scheme, there is no tax on the interest of gold. This gold monetization scheme was started in November 2015. Through this 20 thousand tons of inactive gold will be used for production activities.

Who can deposit its gold in the gold monetization scheme?

Every Indian citizen which is registered by mutual funds or exchange-traded funds can deposit its gold in this scheme’s account. The rules for this account are the same as a normal savings account.

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Scheme related some important facts

  • This scheme was started by the prime minister in 2015. 
  • In this scheme anyone can deposit its gold may it be an individual person or a charitable institute or any government and public body or institutes even state and central governments can too.
  • Interest on the gold is between 2.25% to 2.50% and after maturity, you can get it in the face of gold or currency. 
  • You can withdraw after 3 years from this scheme’s short-term account and after 5 years from a long-term account. 

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Benefits of the Gold Monetization Scheme

  • Through this scheme inactive gold in the locker turned into an earning asset for its owner and with this gold owner also avails the amount given for the locker’s use.

Know what Gold loan is?

  • Gold Monetization Scheme will decrease the gold’s import in the country. Which has a very big hand in the fiscal deficit of India. 
  • Through this worthless inactive gold gains some worth and can be used for production activities. 

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