Gold savings account: What it is, how it may help your finances

By: | Updated: July 4, 2018 1:05 PM

Gold savings accounts: In a bid to give a boost to investments in gold, a comprehensive gold policy is being developed in the country.

The gems and jewellery industry was handed a mixed bag of announcements by the finance minister in this year’s Union Budget.

Gold Savings Accounts: With an aim to boost investments in gold, a comprehensive gold policy is being developed by the government. The final proposal is said to include recommendations from NITI Aayog, CNBC TV 18 reported citing sources. A note in this regard may be sent to the cabinet soon, the report also said. We want the scheme to be deep rooted through post offices existing in the country as they cater to rural areas also, so that poor people can make the best out of it, Surendra Mehta, National Secretary, IBJA told CNBC TV18. According to sources mentioned in the TV report:

1.Gold Savings Account can be used to withdraw gold or cash.

2.No capital gains on withdrawal of gold or cash from Gold Savings Account.

3.Banks to pay interest as per the Sovereign Gold Scheme for Gold Savings Account.

4.Gold Savings Account will make gold monetisation scheme more attractive.

5.No mention of gold import duty in the proposal of Gold Savings Account.

The gems and jewellery industry was handed a mixed bag of announcements by the finance minister in this year’s Union Budget. Various critical policy announcements were made to stimulate the gold ecosystem in the budget.

Most importantly, a comprehensive policy to develop gold as an asset class was well-received by the industry. India, despite being one of the largest consumers of gold in the world, plays an insignificant role in the global bullion market and in the process of determining the price of gold. This has largely been the result of lack of transparency in the domestic market. A national gold policy is expected to bring about a broad action plan that can efficiently connect all the stakeholders of the gold value chain, and help in creating a smooth, efficient and a robust gold ecosystem in the country.

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