Gold scheme on Diwali eve
Says yellow metal can become economic strength
The Modi government will also issue Ashok Chakra gold coins by Dhanteras
I don’t think anybody can reduce the love of people for gold. But to keep gold in the form of dead money does not augur well in this age. Gold can become an economic property Keep gold in the bank and bank will pay you in the form of interest. Now say, can gold not transform from dead money to live power? This is what we have to do NARENDRA MODI, Prime Minister
MUMBAI: The government will issue Ashoka Chakra gold coins and launch the Gold Monetisation Scheme (GMS) among others, on the eve of Diwali, Prime Minister Narendra Modi said on Sunday.
The government will launch this scheme by Dhanteras — the traditional gold-buying day which comes just before Diwali when it is considered auspicious to buy gold — Modi said during his monthly radio address to the nation — ‘Mann Ki Baat’. “For 70 years since independence, we have been using only foreign gold coin and bullion bars. Why should we not use our country’s domestic brand? From Dhanteras this year, five and 10 grams Ashoka Chakra Indian gold coins will be made available to citizens. We will also launch 20-gram gold bullion bars during this time.”
Diwali falls on November 11 this year.
“In the last Budget, we had announced an important scheme. In our country, gold has become a part of social life. Gold is treated as a means of economic security, a help during the time of crisis. It is traditionally believed so.
“I don’t think anybody can reduce the love of people for gold. But to keep gold in the form of dead money does not augur well in this age. Gold can become strength, an economic strength. It can become the country’s economic property and every Indian should contribute to this,” he said.
He noted that according to traditional practice, people keep gold in lockers, for which they have to pay to banks. “Now, keep gold in the bank and bank will pay you in the form of interest. Now say, will gold not be an asset? Can gold not transform from dead money to live power? This is what we have to do. You support me.”
Last week, the Reserve Bank of India issued directions under the GMS, allowing scheduled commercial banks to accept gold deposits for short and long terms and provide interest on the gold deposited. The banks can set their own interest rates aligned to their short-term, medium and long-term deposit rates.
The scheme was announced by the government in September with an aim to reduce physical demand for gold and help curb imports to contain the current account deficit — the measure of the difference between the inflows and outflows of a foreign currency. The government is also looking to mobilise a part of 20,000 tonnes of idle gold, worth about `5,40,000 crore, lying with households and temples.
The exact date of implementation of the GMS, which will replace the existing Gold Deposit Scheme of 1999, will be announced soon.
Under the scheme, the minimum deposit should be 30 grams of 995 fineness. Gold would be accepted at collection and purity testing centres certified by the Bureau of Indian Standards and notified by the government. Deposit certificates will be issued by banks and the principal and interest of the deposit will be denominated in gold.