Gold monetisation scheme

Why in news?

• The government is planning to tweak the existing gold deposit and gold metal loan schemes to wean away investors from excessive investment in physical gold.

About GMS

• Launched in 2015, the scheme is a new deposit tool to ensure mobilization of gold possessed by various families and institutions in India.
• It is expected that the scheme would turn gold into a productive asset in India as beneficiaries earn interest on unused gold lying idle in bank lockers.
• It is a modification of the earlier Gold Deposit Scheme (GDS) and Gold Metal Loan Scheme (GML), and it replaced the Gold Deposit Scheme, 1999.
• Deposits can be made by residents of India, HUFs’, mutual funds and exchange trading funds registered under SEBI. Joint deposits are allowed with a minimum of two holders with no cap on the maximum number.
• The scheme accepts a minimum deposit of 30gm of raw gold in the form of a bar, coin or jewellery.
• Under the scheme, investors can earn 2.25 per cent interest on medium- and long-term gold deposits having 5-7 years and 12-15 years tenure

PRELIMS QUESTION

Consider the following statements regarding Gold monetisation Scheme:
1.Deposits can be made in the scheme by residents of India, HUFs, mutual funds and exchange trading funds registered under SEBI.
2.The scheme accepts a minimum deposit of 30gm of raw gold in the form of a bar only.
Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
 

Answer to Prelims Question