Govt tweaks gold monetisation scheme; bonds hit among investors
The Gold Monetisation Scheme is aimed at reducing the country’s reliance on the import of gold to meet the domestic demandWhile thousands applied for the subscription of gold bonds worth over Rs. 246 crore in the first tranche, the government’s gold monetisation scheme attracted only a handful of household depositors, prompting authorities to tweak the scheme. The government had launched three gold related schemes—Sovereign Gold Bond Scheme (SGB), Gold Monetisation Scheme (GMS) and Indian Gold Coins and Bullions on November 5. The first tranche of SGB was issued by RBI through its e-kuber system from November 5 to November 20. “This (SGB) scheme saw an overwhelming response from the investors throughout the country and initial figures show that about 63,000 applications were received for a total of Rs 246.20 crore by the banks and post Offices for 917 kgs of gold,” a Finance Ministry statement said on Friday. The RBI will issue more such bonds in tranches. The success of this scheme has given the government an indication that this scheme will help India curb imports of gold by a sizeable margin. However, taking note of the lukewarm response to the Gold Monetisation Scheme (GMS), the Department of Economic Affairs on Friday held a meeting with all the stakeholders and decided to make some amendments to make it more attractive for customers. Now the government has clarified that dipositors will get exemption from paying income tax or capital gains tax on their interest earning through monetisation of household gold. Also, depositors can give their gold directly to the refiner without involving the Collection and Purity Testing Centres (CPTCs) where ever it is acceptable to the banks. “This will encourage the bulk depositors like HUFs and Institutions to participate in the scheme,” the Finance Ministry said. The Gold Monetisation Scheme is aimed at reducing the country’s reliance on the import of gold to meet the domestic demand. In the absence of attractive gold investment schemes, India had long been dependent on imports of the yellow metal to meet its domestic demand.
November 28, 2015 |2:25pm IST
to success.