New Delhi: Prime Minister Narendra Modi on Thursday launched three gold-related schemes, including a coin engraved with the images of national emblem Ashok Chakra and Mahatma Gandhi on its two sides, in a bid to put some 20,000 tonnes of idle gold into productive use.
Under the gold monetisation scheme, people can deposit minimum 30 grams of raw gold (bars, coins, jewellery excluding stones and other metals). There is no maximum limit for deposits under the scheme.
The scheme aims to tap unused gold in private possession and bank lockers and deposit boxes lying idle. This will raise bank deposits and help them generate more liquidity.
Under the scheme, banks will collect gold for up to 15 years to auction them off or lend to jewellers from time to time. They will pay 2.25-2.50 per cent interest a year, higher than previous rates of around 1 percent.
Previous attempts at mobilising this gold have been unsuccessful, but PM Modi is hoping higher interest rates paid will help it to succeed this time.
At an event in Delhi, the PM also unveiled the first-ever Indian gold coin with national emblem Ashok Chakra engraved on one side. These gold coins will be available in denominations of five and 10 grams. A 20 gram gold bar will also be available. Initially, 15,000 coins of five gm, 20,000 coins of 10 gm and 3,750 Gold bullions will be offered.
According to the World Gold Council, an estimated 22,000-23,000 tonnes of gold is lying idle with households and institutions in India.
The annual imports amount to around 850-1,000 tonnes valued at $35-$45 billion.
