Gold Monetisation Scheme (GMS)
The Gold Monetization Scheme was launched on November 5th by Prime Minister Narendra Modi. It’s designed to help you earn interest on your unused gold lying idle in bank lockers. The Gold Monetization Scheme is basically a new tool to ensure that the gold possessed by various families and institutions in India gets put to good use. This new gold scheme replaces the existing Gold Deposit Scheme, 1999, and it helps to turn gold into a productive asset in our country.
Key features of the Gold Monetization Scheme
- The central public scheme will accept at least 30 gm of gold, in any form that it is in.
- There is no maximum amount to invest with this scheme.
- This plan allows you to close your account before the end of the lock-in period, but there’s a penalty for early withdrawals.
- All commercial banks in India are allowed to participate in the Gold Monetization Scheme.
- In some cases, the interest rate for this would be 2.50%. This is an improved rate over the previous rates for gold investments.
- Gold Monetization Scheme short-term deposits are available only in gold, while they can be redeemed in either gold or rupees.
Benefits of investing in the Gold Monetization Scheme
- Your gold will earn interest while it’s idle, so you’ll make progress on your savings without having to spend money.
- The country could thrive if it started producing more of its own gold.
- There is a great deal of flexibility when you choose to invest in this company. You can withdraw your investment and cash proceeds as soon as you need them.
- To start your investment, you only need $150 of physical gold.
Some of the gold in this country, 30 tons of it annually, could go to MMTC and RBI for minting into gold coins or even borrowing from them. This is all a part of the government’s strategy to use valuable assets like gold to build up our economy and make the country stronger.