Government alters Gold Monetisation Scheme and allows redemption of deposits in Gold or Currency

New Delhi: The Government has now offered a tweaked gold monetisation scheme, wherein the Government has permitted the investors to redeem deposits either in Gold or in equivalent currency also. This move of the Government is expected to attract the temple trusts, among them many temples are possessing significant amount of Gold in their control.

As per the statements which were released from the Finance Ministry, for the deposited Gold under the Medium and Long term Government Deposits, the investors will be allowed to redeem the principal at a maturity, at the options, either in Indian Rupee equivalent of value of deposits at the time of the redemption or in Gold”.

Moreover, notably, as per the scheme, if any investor desires to redeem deposits in Gold, then he would be required to play administrative charges at the rate of 0.2 per cents of the National redemption amount, and this would be payable in Indian rupees.

Thus, as per the statements released from the ministry, the said alteration in the gold monetisation scheme of the Government, will be expectedly, making the scheme more “attractive for potential depositors”.

Moreover, the interest which would be accrued on the scheme, would only be paid in “cash”, after calculating the same with reference to the value of Gold in terms of Indian rupees at the time of deposit.

It was also seen earlier, that there were number of alterations brought into the said scheme of the government, and the key modifications were to facilitate monetisation of Gold by people. Notably, this scheme was launched in the last year, November, when government aimed at curbing the imports of the Gold, which has a bearing on Current Account Deficit.

The investors can deposit under Medium Term Government Deposit- MTGD, made for Five to Seven years, and deposits in Long Term Government Deposit can be made for Twelve to Fifteen years.

Notably, in India an estimated Gold of Twenty Thousand tonnes, are lying with the Indian households, even after that India is importing about a thousand tonnes of gold every year.

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