Gold monetization and Sovereign gold bond from month of November
Posted on: 06/Oct/2015 10:23:15 AM
Finance Ministry has mentioned that it will launch two schemes, Gold monetization and Sovereign gold bond from month of November. On 9th the Cabinet approved Gold Bond and Gold Monetization schemes to reduce the metal`s demand in physical form and fish out idle gold lying with households and other entities.
Through the Gold Monetization Scheme, gold in any form can be deposited with banks for a period of 1-15 years that will earn interest while redemption will be at the prevailing value at the end of the tenure.
Sovereign gold bonds, on the other hand, are aimed at people buying the precious metal as an investment. Such bonds will be issued in denominations of 5 grams, 10 grams, 50 grams and 100 grams for 5-7 years with a rate of interest to be calculated on the value of the metal at the at the time of investment.
However, there will be a cap of 500 grams that a person can purchase in a year. Such bonds will be offered to only Indian citizens and institution while the securities will be traded on exchanges to allow early exit for investors.
