Gold Monetisation Scheme was launched by the Government of India in 2015. Under this scheme one can deposit their gold during any form in a GMS account to earn interest because the price of the gold metal goes up.
Gold Monetization Scheme Benefits
The benefits of gold monetization scheme are:
1. Mobilise idle gold: The scheme will help in mobilizing gold that has been lying idle within the confined spaces of households, trusts, and other institutions in India.
2. The movement of gold within the national market will further benefit the Indian gems and jewelry sector. This may be a major contributor to India’s exports.
3. Earn interest: Gold lying in your bank lockers or household doesn’t earn you anything.
4. Once you store gold during a bank locker, it costs you bank locker charges to stay it safe.
The gold monetization scheme will assist you to earn interest on your gold deposits, which can increase your savings.
5. Avail secured storage: Bank lockers are hard to urge. Opening a gold time deposit account with a bank will eliminate your tension regarding gold storage.
6.Enjoy tax benefit: The earnings on the gold monetization scheme are exempted from the capital gains tax, wealth tax. Even when the worth of your gold deposit appreciates, capital gains tax won’t be levied thereon or on the interest, you earn from it.
7.Get flexibility on redemption: The gold depositor has the choice to require either cash or gold on redemption. However, the redemption preference has got to be mentioned at the time of deposit.
8. Reduce the government’s reliance on gold imports: The mobilized gold also will supplement the RBI’s (Reserve Bank of India) gold reserves.
It’ll also help the govt in reducing the Government’s cost of borrowing.
1. You need to carry Savings/accounting with ICICI Bank before opening Gold time deposit account for the credit of interest on gold deposit in INR.
2. Just in case you are doing not hold an account with us, you’ll get to open a Savings/accounting after complying with the KYC norms.
3. Deposits are often made by residents of India, HUFs’, mutual funds, and exchange trading funds registered under SEBI.
4. Yes, joint deposits are allowed with a minimum of two holders with no cap on the utmost number.
How to open an account for Gold monetization?
1.Individuals willing to open a gold time deposit account need to do so with a scheduled bank as listed under RBI guidelines.
2.The character of the account would be almost like normal zero balance saving bank accounts.
3.The documents which are required to open the account also are equivalent as those required for any savings.
4.Checking account opening viz. customer (KYC) form alongside valid address proof, ID proof, and passport size photograph.
i. Once verification of details is completed, depositors got to approach the govt authorized Collection and Purity Testing Centres (CPTC).
ii.The bank will provide this list to the depositor.
iii. CPTC will perform an in-depth assessment of the gold.
iv. Once the verification is successfully done they’re going to issue a receipt for the gold quantity which is signed by the authorized signatories of their center.
v. The Depositor will then need to submit the receipt within the bank who will successively issue a final deposit .
vi. The certificate to the depositor with all relevant information including the tenure that the deposit is formed