New Delhi: One can deposit as low as 30 grams of gold under the new gold Monetisation Scheme once the draft is approved for implementation. The scheme aims to bring out around 20,000 tonnes of gold lying idle with households.The finance Ministry has put up draft of the scheme in the public domain and invited comments. Any one can give his views in www.mygov.in. by June 2. Based on these views, the new scheme will be finalised. The scheme was announced in the last General Budget and it aims to replace both the present gold Deposit and gold metal Loan Schemes. New scheme will allow the depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account.
The draft prescribes the process for participating in the scheme. At first Interested customer need to go to purity testing centres . There are around 350 Hallmarking Centres spread all over the country and those will act as the Purity Testing Centres. Those centres will examine the purity, melt the gold and deposit it there itself. These centres will take up to 5 hours to weigh, melt the gold, verify the purity and issue the certificate against present practice of 90 days.At every stage, the person will have to take his/her gold back. However, the customer will have to pay the charges, if he is taking back the melted gold in the form of gold bars and not depositing.
In case of deposit, bank will pay the charges. Post deposit, the customer will be issued a certificate. Based on this certificate, bank will open a Gold Savings Account. Interest on such account will be payable after 30/60 days of the opening of account. It is the discreation of the banks to decide the interest rate for gold . Both principal and interest will be valued in gold. For example, if a customer deposits 100 grams of gold and gets 1 per cent of interest, then, on maturity, he has a credit of 101 grams. Besides he can return back it in the form of money in stead of gold also.
Minimum tenure of such account will be one year with an option of rolling over in multiples of one year. The draft says that after due examination depositors can get exemptions from Capital Gain Tax, Wealth Tax, and Income Tax . Gold deposited under the scheme can be lent to the jewellers for their use, this reducing the dependency on import. India imports nearly 1000 tonnes of gold every year.
Earlier, one Gold Deposit scheme was introduced in 1999 with an aim to mobilise the idle gold in the country and put it into productive use. However, it has not been very successful and less than 10 tonnes of gold has been collected. There are many reasons for disappointing performance which include lower interest rate and time taking process for issuance of certificate.