1. Gold bonds scheme ending today, may fetch Rs 150 crore, say bankers

Gold bonds scheme ending today, may fetch Rs 150 crore, say bankers

The country imports a staggering 1,000 tonnes of gold every year, draining out foreign exchange and putting pressure on the fiscal deficit.

By: | Updated: November 20, 2015 1:37 PM
gold rate

The gold bonds scheme, which opened on November 5, will close today, as per government notification.
(Reuters)

Bankers on Thursday expressed hope that the maiden gold bond scheme, launched by Prime Minister Narendra Modi earlier this month aimed at physical buying of the shiny metal, that closes today, is on Friday to gross around Rs 150 crore.

“The scheme has already grossed up Rs 145 crore as of Thursday and we expect the scheme to end with Rs 150 crore by the end of the day today,” a senior public sector banker told PTI this evening.

The banker also said that the numbers look reasonably good considering that this is the limited period offer and that a maiden one.

The gold bonds scheme, which opened on November 5, will close on Friday, as per government notification.

On the other hand, it has been reported that the monetisation has failed with only around 400 gm being deposited so far.

It could be recalled that on November 5, Modi had launched two gold schemes – a mega gold monetisation scheme aimed at getting a large chunk of idling 20,000 tonnes of gold jewellery with households and temples worth Rs 52 trillion into bank vaults; and a gold bond scheme that offers 2.75 per cent interest to buyers, to curb its imports that have made the country the largest buyer of gold in the world.

The country imports a staggering 1,000 tonnes of gold every year, draining out foreign exchange and putting pressure on the fiscal deficit.

Modi had unveiled the maiden gold coin and bullion, bearing national emblem Ashok Chakra on one side and Mahatma Gandhi’s image engraved on the other side.

The Sovereign Gold Bonds Scheme offers 2.75 per cent annual interest rate. Buyers will have to disclose their permanent account number and other KYC documents.

Initially, the coins will be available in denominations of 5 and 10 grams. A 20 gram bullion will also be available through 125 MMTC outlets.

Under the gold monetisation scheme, banks will collect gold for up to 15 years to auction them off or lend to jewellers from time to time. Depositors will earn up to 2.50 per cent interest per annum, a rate lower than bank deposits.

With regard to the sovereign gold bonds, capital gains tax treatment would be the same as for physical gold for an individual investor.

The RBI had fixed the gold bonds issue price at Rs 2,684 per gram, which is aimed at providing an alternative to buying physical gold, and also fixed an interest rate of 2.75 per cent and a choice to buy bonds worth 2 grams of gold, up to a maximum of 500 grams.

  1. C
    Concerned Indian
    Nov 20, 2015 at 1:31 pm
    Gold Loans, especially in small pawn shops are the financial life line of Indian Poor & Middle Cl. Whereas the Gold deposit schemes have never took off successfully. The concerned Finance Ministry, RBI & Bankers should arrive at a modified Gold Loan instead of Gold Deposits to make this more successful. Gold mortgaged in Gold Loan can be given back in solid pieces rather than as as Jewels with a very low interest rate on loans, this will attract a lot of gold stored in the Vaults.
    Reply

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