Modi Launches the Ambitious Gold Monetisation Scheme

Modi today launched the Gold Monetisation Scheme which will offer option to Indians to deposit gold & earn interest.

Prime Minister Narendra Modi with Union Finance Minister Arun Jaitley and the Minister of State for Commerce & Industry (Independent Charge), Nirmala Sitharaman during the launch of Government Gold schemes, in New Delhi on Thursday. (Photo: PTI)

Prime Minister Narendra Modi today launched three ambitious schemes to reduce the physical demand for gold and fish out 20,000 tonnes of the precious metal worth $800 billion lying idle with households.

The Gold Monetisation Scheme (GMS), 2015 will offer option to resident Indians to deposit their precious metal and earn an interest of up to 2.5 per cent, while under the Sovereign Gold Bonds Scheme investors can earn an interest rate of 2.75 per cent per annum by buying paper bonds.

Modi also unveiled the first ever Indian gold coin & bullion, bearing the Ashok Chakra on one side and Mahatma Gandhi’s image engraved on the other side.

Initially the coins will be available in denominations of 5 and 10 grams. A 20 gram bullion will also be available through 125 MMTC outlets.

Speaking on the occasion, Modi said India has surpassed China as the world’s largest gold consumer, buying 562 tonnes of yellow metal so far this year, against China’s 548 tonnes.

Observing that there is no reason for the country, which has 20,000 tonnes of gold lying idle with households and institutions, to remain poor, he said, with some efforts and right policies India can get rid of this tag of a poor nation.