Cabinet Clears Gold Bond, Monetisation Schemes: How It Helps You

| September 9 , 2015 , 16:30 IST
The Cabinet on Wednesday approved Gold Bond and Gold Monetisation schemes to reduce the metal's demand in physical form and fish out idle gold lying with households and other entities. "It is safer and economically more stable to go under both these schemes," Finance Minister Arun Jaitley said after the Cabinet meeting. gold price
By taking advantage of gold monetisation scheme, people can deposit idle gold with authorised agencies and take advantage of the price escalation of gold as well as earn interest on the deposit.
Gold Bonds will be issued with a rate of interest to be decided by the government. Interest will be calculated on the value of gold deposited at the time of investment.
The Gold Bond scheme will have an annual cap of 500 grams per person and such bonds would be issued for a period of 5-7 years. Under this scheme instead of buying physical gold, Indian residents can buy the gold bonds.
The bonds will be issued in 2, 5 and 10 grams of gold or other denominations and the tenor of the bond could be for a minimum of 5-7 years so that it protects investors from medium-term volatility in gold prices.
In Gold Monetisation Scheme, people holding idle gold can deposit it in banks for either short, medium or long term.