Gold Monetisation Scheme

This decision comes after a comprehensive review of the scheme's performance and evolving market conditions

The government has decided to discontinue the Gold Monetisation Scheme (GMS) starting from Wednesday in view of the evolving market conditions, the finance ministry said. However, the banks may continue their short term gold deposit schemes (1-3 years), the ministry said in the statement on Tuesday. Till November 2024, approximately 31,164 kilograms of gold have been mobilised under GMS. The Gold Monetisation Scheme was announced on September 15, 2015, with the objective to reduce country's reliance on the import of gold in the long run and mobilise gold held by households and institutions in the country to facilitate its use for productive purposes. The GMS is comprised of 3 components -- Short Term Bank Deposit (1-3 years); Medium Term Government Deposit (5-7 years), and Long-Term Government Deposit (12-15 years). "Based on the examination of the performance of the Gold Monetisation Scheme (GMS) and evolving market conditions, it has been decided to discontinue the Medium Term a

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The government has earned over Rs 3,400 crore from disposal of enemy properties, mostly movable assets like shares and gold, officials said. Enemy properties are those left behind by people who took citizenship of Pakistan and China after leaving India during the partition and post the 1962 and 1965 wars. "The Custodian of Enemy Property for India (CEPI) has realised a total of Rs 3,407.98 crore from disposal of enemy properties which include 7,52,83,287 shares (for Rs 2,708.9 crore) of 152 companies in 2018-19, 2019-20, 2020-21 and 2021-22, and Rs 699.08 crore as revenue receipts," an official of the Ministry of Home Affairs (MHA) said on Tuesday. Altogether, 1699.79 grams of vested gold has also been sold for Rs 49,14,071 and 28.896 kilogram of silver ornaments have been disposed of for Rs 10,92,175 in January 2021 through Government of India Mint, Mumbai as per provisions of the Enemy Property Act, he said. No immovable enemy property has so far been monetised by the government

'Any premature redemption of Medium and Long Term Government Deposit (MLTGD) would be only in Indian rupee'

In 2015, the government had launched the Gold Monetisation Scheme to mobilise the yellow metal held by households and institutions in the country

The industry should not be overregulated in the name of developing it or curbing black money

With relaxation, one can also deposit with refiners and purity testing centres

The government is also considering making gold as an asset class, a source said

If gold deposited upon maturity is returned in a cash equivalent, many temples would stay away from depositing gold

The country's largest lender, State Bank of India, is expected to be asked to identify at least 10 branches for this

With the Government of India's (GoI) Gold Monetization Policy yet to taste real success in triggering increased circulation of gold in the economy, a research paper at India Gold Policy Centre (IGPC) suggests the policy's effectiveness depends on incentivising banks and understanding consumer sentiments. The scheme launched in November 2015 with a much funfare to mobilise idle gold in the country to use it for economy has met with a poor response with a few tons fresh mobilization. Part of 14 such papers introduced at the recent Conference on Gold and Gold Markets, 2018 by IGPC at the Indian Institute of Management, Ahmedabad (IIM-A), the research paper was co-authored by Priya Narayanan, Balagopal Gopalakrishnan, Arvind Sahay of IIM-A. The paper quotes a nation-wide survey-based study of 1171 households as well as interview based study of senior management of six banks, five gold refiners and one industry consultant. Titled as 'Gold Monetization in India as a Transformative Policy: .

Gold can be deposited under GMS with a designated bank in the account of the Central govt

Options being discussed over reluctance of banks and loans from GMS deposits

Scheme intends to mobilise idle gold held by households so that wealth can be put to productive use

IGPC interviewed top bank officials, refineries to grasp challenges of the policy and implications

"People do not have cash to buy gold in rural areas, while urban consumers are in holiday mood

5.7 tonnes collected under gold monetisation scheme

The proposal to auction gold was discussed in a meeting recently by commerce and finance ministries, sources said