Gold Investment Scheme/Plans In India

By | August 25, 2017

Recently the Indian Government has launched schemes which were based on Physical Gold. These schemes were centrally targeted at reducing the demand of physical gold and luring the customers to introduce the same in banking sectors. These schemes are being considered important by the economists because they feel that this scheme will reach to the households. Thus, households would be empowered and strengthened. In India, the purchase of gold is considered auspicious. The Government of India has therefore taken this step so that the households can purchase gold with more ease and convenience.

There are three basic Gold Schemes launched by the Government of India. They are as follows:

  1. Sovereign Gold Bond Scheme

The Sovereign Gold Bond Scheme (SGBS) is issued by the central bank, The Reserve Bank of India. It is issued on behalf of the government with an interest rate of 2.75 %. These bonds are not sold by any of the organization without the permission from Government of India. As of now, these bonds will be sold through only designated post offices. The tenor of the bond is kept minimum of 8 years and an early exit is allowed after 5 years. There is an exemption of capital gain tax arising on redemption of SGB. The minimum investment can be of 1 gram of gold.

  1. Gold Monetisation Scheme

The citizens of India can now deposit gold under Gold Monetisation Scheme. It completely modifies the pre-existing ‘Gold Deposit Scheme’. It is basically introduced to mobilize the gold held by the households. Once the gold is mobilized, it can be used as a facilitator for productive purposes. Right now, the country is extremely relied on the import of Gold. Economists expect that this scheme will bring down the reliance of India on imported gold.

 The deposit will be done in grams with the purity check of 995. The deposit will entitle the depositor interest at the rate of interest notified by the Reserve Bank of India and decided by the Financial Minister of Central Government. The interest rate may vary from time to time according to the changing conditions of the Indian economy. Few commercial banks have been designated as authorized institutions to implement the Scheme. This scheme will be monitored by the Securities and Exchange Board of India (SEBI).

  1. Gold Coin and Bullion Scheme

Narendra Modi’s led central government has launched a Gold Coin and Bullion Scheme. It is a part of the Gold Monetisation Programme. The coin launched under this scheme becomes the first Indian Gold coin minted post-independence. The coin will have an Ashoka Chakra engraved on one side and the photo of the father of the nation Mahatma Gandhi on the other side. The coins will be made of gold in highly original form that is 24 karats and will be tested on purity 999. The coins will be available in denominations of 5 grams and 10 grams but with the passage of time more variants are expected. This Scheme carries an advanced anti-counterfeiting feature and each and every coin will be hallmarked as per BIS standard.

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