PM Modi to launch first India gold coin’, other gold monetisation schemes today

PM Modi to launch first India gold coin', other gold monetisation schemes todayNew Delhi: Prime Minister Narendra Modi will today launch the first ever ‘India gold coin’ bearing Ashok Chakra in a move to cash in on the festive season of Diwali and Dhanteras which is an auspicious ocassion for Indians to invest in the yellow metal.

Besides the gold coin, Modi will also launch the Gold Monetisation Scheme (GMS) and Gold Sovereign Bond Scheme. According to the Finance Ministry, the coins will be available in denominations of 5 and 10 grams at initial stage. About 15,000 coins of 5 gm, 20,000 coins of 10 gm and 3,750 gold bullions will be made available through MMTC outlets, a Finance Ministry statement said.

The minimum deposit at any one time shall be raw gold (bars, coins, jewellery excluding stones and other metals) equivalent to 30 grams of gold of 995 fineness, it said, adding, there is no maximum limit for deposit. The deposit certificates will be issued by banks in equivalence of 995 fineness of gold. The principal and interest of the deposit under the scheme will be denominated in gold,” it said.

While the former will be accepted by banks on their own account, the latter will be on behalf of the government. There will be provision for premature withdrawal subject to a minimum lock-in period and penalty to be determined by individual banks. With regard to Sovereign Gold Bonds, it said, the RBI in consultation with Government has decided to issue such instruments.

“Applications for the bond will be accepted from November 5-20. The Bonds will be issued on November 26. The Bonds will be sold through banks and designated post offices as may be notified. The borrowing through issuance of Bond will form part of market borrowing programme of Government,” it said.

Bureau Report

 

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