HIghlights of Gold Schemes

Highlights of recently launched Gold Monetisation Scheme, Gold Bond Scheme and Gold Coin/Gold Bullian Scheme.

Gold Monetisation Scheme (GMS), 2015 

The GMS will replace the existing Gold Deposit Scheme, 1999. However, the deposits outstanding under the Gold Deposit Scheme will be allowed to run till maturity unless the depositors prematurely withdraw them.

• Interest rate on Medium and Long Term Government Deposit (MLTGD) are 2.25 per cent and 2.20 per cent, respectively.
• The tenor of medium term would be between 5-7 years while long term would for 12-15 years tenure.
• The principal and interest of the deposit under the scheme will be denominated in gold

Sovereign Gold Bond Scheme 

The sovereign gold bonds will be issued in multiple tranches subject to the overall borrowing limits of Government of India (GoI). Applications for the bond under the first tranche will be accepted from November 05, 2015 to November 20, 2015. The Bonds will be issued on November 26, 2015. The Bonds will be sold through banks and designated post offices as notified. 

• These bonds will be issued in denominations of 5, 10, 50 and 100 grams of gold or other denominations.
•   Applications for the bond will be accepted from November 5-20. The Bonds will be issued on November 26.
• The Bonds will be sold through banks and designated post offices as may be notified.
• Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar Card/PAN or TAN /Passport will be required.
•   The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961) and the capital gains tax shall also remain same as in the case of physical gold. Bonds will be tradable on exchanges/NDS-OM from a date to be notified by RBI.
• The Bonds will be eligible for Statutory Liquidity Ratio(SLR). Commission for distribution shall be paid at the rate of 1% of the subscription amount.

Gold Coin/Bullion Scheme

 The coin will be the first ever national gold coin minted in India and will have the National Emblem of Ashok Chakra engraved on one side and Mahatma Gandhi on the other side . Initially, the coins will be available in denominations of 5 and 10 grams.

 A 20 gram bullion will also be available. Initially, 15,000 coins of 5gm, 20,000 coins of 10 gm and 3,750 of bullions of 20 gm will be made available through MMTC outlets. 

The Indian Gold coin & bullion is unique in many aspects and will carry advanced anti-counterfeit features and tamper proof packaging.