Sustainability by Design: Assessment Tool for Just Energy Transition Plans
Gold monetization scheme
1.
2. O MEANING
O OBJECTIVE
O SCHEME
O DRAFT OF GOLD MONETIZATION SCHEME
O MoU BETWEEN BANKS, REFINERIES AND
PURITY TESTING CENTERS
O COINS FOR GOLD MONETIZATION
SCHEME
O ROADBLOCKS
O BENEFITS
O REFERENCES
3. The gold monetization scheme is the simpler
form of the gold deposit scheme of SBI. The
government has designed Gold Monetization
Scheme to reduce the gold import.
The MOF (Ministry of finance) hopes by this
strategy to reduce the CAD (Current Account
Deficit) caused due to the gold import that has
mounted to 87.8 US dollars and is a whooping
4.7% of the GDP.
4. The objectives of the Gold Monetization Scheme
are:
i. To mobilize the gold held by households
and institutions in the country.
ii. To provide a fillip to the gems and jewellery
sector in the country by making gold
available as raw material on from the banks.
iii. To be able to reduce reliance on import of
gold over time to meet the domestic demand
5. SCHEME
O The draft outline of the scheme detailed in
this section, has been prepared after due
deliberations and consultations with
various stakeholders which includes
banks, refineries, hallmarking centres,
jewellers’ associations; RBI; and various
government departments.
6. O 1. PURITY VERIFICATION AND
DEPOSIT OF GOLD
i) Purity testing centres
ii) Preliminary test
iii) Fire assay test
iv) Deposit of gold
v) Conditions
7. O 2. OPENING OF GOLD SAVINGS
ACCOUNT
i) Gold savings account
ii) Interest payment by banks
iii) Redemption
iv) Tenure
v) Tax exemption
8. O 3. TRANSFER OF GOLD TO THE
REFINERS
i) Refineries
ii) Transfer of gold to refineries
iii) Payment
9. O 4. UTILIZATION OF DEPOSITED GOLD
i) CRR/SLR
ii) Foreign currency
iii) Coins
iv) Exchange
v) Lending to jewellers
10. O 5. LENDING THE GOLD TO THE
JEWELLERS
1. Gold loan account
2. Delivery of gold to jewellers
3. Interest received by banks
11. O The banks will enter into a tripartite MoU with
refiners and purity testing centres, that are
selected by them to be their partners in the
scheme.
O The MoU will clearly lay down the details
regarding payment of fee, services to be
provided, standards of service and the details
of the arrangements between the banks,
refiners and purity testing centres.
12. O Coins to be manufactured in October.
O Will allow depositors of gold to earn
interest on their metal accounts.
O Coins of 5gm and 10gm weight would
have Ashoka Chakra and face of
Mahatma Gandhi.
O Coins to be sold in the USA, UK and
South Africa.
13. O Enticing the investors to give holdings for
recasting is a huge challenge
O Customer loses out on the making
charges
O KYC stipulation of the banks
O Tedious process
14. BENEFITS
1. BENEFIT TO THE INVESTORS
O Interest on gold that are kept in lockers
O Increase gold holding
O Exemption from income tax, wealth tax
and tax on capital gains
2. GOLD AND JEWELLERY INDUSTRY
3. BANKS
