Gold rate : The government has closed the Gold rate Monetization Scheme (GMS). This decision has come into effect from March 26. The Finance Ministry has issued a statement informing about the closure of this scheme. It is worth noting that this is the second scheme of the government related to gold, which has been decided to be closed. Earlier, the government has also closed the Sovereign Gold Bond (SGB) scheme. However, no formal announcement has been made regarding this. However, the government has not issued a new installment of SGB since February 2024, which suggests that the government does not want to continue this scheme.
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What is the Gold Monetization Scheme? – The Gold rate Monetization Scheme was started on September 15, 2015. Under this scheme, a person can deposit idle gold at home. In fact, the government launched this scheme with the aim of reducing the import of gold. The government believed that people would deposit their idle gold in this scheme, which would reduce the import of gold. The annual consumption of gold in India is about 800 tonnes, while the annual production of gold in the country is only 1 tonne. Therefore, the government has to import a lot of gold every year.
gold rate : The government has closed the Gold rate Monetization Scheme (GMS). This decision has come into effect from March 26. The Finance Ministry has issued a statement informing about the closure of this scheme.
What is the benefit of depositing gold rate in GMS? – On depositing gold in this scheme, the government issues gold bonds to the depositor. These bonds are of 5 grams, 10 grams, 50 grams and 100 grams. These bonds mature in 5-7 years. The interest rate on these bonds is calculated based on the market price of gold at the time of depositing the gold. The government believed that people who deposit gold in this scheme will earn interest, so that people will show interest in depositing gold in this scheme.
Can gold rate be deposited in this scheme now? – You can still deposit idle gold lying at home in this scheme. Because there were a total of three options in this scheme. The government has closed only two options. The first option is short-term bank deposit, whose tenure is 1-3 years. The second option is medium-term government deposit, whose tenure is 5-7 years. The third option is long-term government deposit, whose tenure is 12-15 years. It is worth noting that the government has closed only medium-term and long-term government deposits. Short-term bank deposits (STBD) will continue.
However, the government has not banned short-term bank deposits (STBD), but has left the decision to continue it to the banks. This means that the bank can offer this scheme to the customers as per its requirement. If a bank feels that it does not need to continue this scheme, it can decide to close it. Because, the interest rate of the short term bank deposit scheme is decided by the bank itself. The interest rate of medium term and long term deposits is decided by the government. The interest rate of medium term bonds is 2.25%, while the interest rate of long term bonds is 2.5%.
What is the Gold Monetization Scheme? – The Gold rate Monetization Scheme was started on September 15, 2015. Under this scheme, a person can deposit idle gold at home. In fact, the government launched this scheme with the aim of reducing the import of gold. The government believed that people would deposit their idle gold in this scheme, which would reduce the import of gold. The annual consumption of gold in India is about 800 tonnes, while the annual production of gold in the country is only 1 tonne. Therefore, the government has to import a lot of gold every year.
