Wants to unlock idle gold in households.
To help mobilise idle gold in households.
This may free up resources for productive or lending purposes.
Only 400 grams have been deposited so far.
In 5 years, the average demand for gold has been 895 tonnes annually.
Regulator probing jewellery houses for violation of collective investment scheme rules, says Shrimi Choudhary.
The government has decided to discontinue the Gold Monetisation Scheme (GMS) starting from Wednesday in view of the evolving market conditions, the finance ministry said. However, the banks may continue their short term gold deposit schemes (1-3 years), the ministry said in the statement on Tuesday. Till November 2024, approximately 31,164 kilograms of gold have been mobilised under GMS.
The Bill provides comprehensive legislation to prohibit unregulated deposits, with punishment for those promoting such schemes or defaulting on repayment.
The government's ambitious gold deposit scheme can succeed only if depositors are paid a higher interest rate.
The biggest bullion-importing bank in India plans to team up with jewellers for the first time to offer a gold deposit scheme, hoping ease of access and attractive interest rates will tempt people to part with their jewellery and relieve tight supplies.
Jewellers initially feared the ban applied on them, too. However, after discontinuing their monthly schemes for almost two weeks, they've started accepting deposits again.
'In my entire career, whenever friends, relatives, or associates have sought my counsel, I have told them consistently: Stay away from equities. Buy gold. Place funds in fixed deposits. Acquire some raw land.' 'That is all one genuinely needs to build meaningful, enduring wealth, without the attendant anxiety of equity market participation.'
The country's two biggest state-run lenders on Saturday pitched for treating a portion of their gold deposits as part of the mandatory cash reserve ratio (CRR) or statutory liquidity ratio (SLR), both of which banks consider as non-productive.
From the financial year 2025-2026, the government has introduced a new column in the tax return form for presumptive taxpayers, requiring them to disclose their year-end investments. This requirement was not present last year.
Fixed deposits from nationalised banks delivered higher returns than equities, outperforming both inflation and stock market benchmarks.
'People become guided by emotions, fear of missing out, and greed. They tend to invest in booming sectors that may prove exceptionally expensive.' 'Typically, that represents the peak, and subsequently, they lose substantially.'
Prime Minister Narendra Modi attacked the ruling Left and Congress in Kerala, raising the Sabarimala gold loss issue and accusing the Congress of aligning with hardline elements. He urged voters to choose the BJP for development and good governance.
India imported 967 tonnes of gold in 2014-15.
The Enforcement Directorate has attached assets worth over 441 crore in connection with the Andhra Pradesh liquor scam, which allegedly occurred during the previous YSRCP government's tenure.
'In the last one year, we have added more than Rs 1.7 trillion, and we are on track.'
'In most schemes, where the monthly investment is a fixed amount, investors run the risk of the price of gold rising during the tenure of the recurring deposit,' notes Harsh Roongta.
Gold deposited by households to gold savings accounts will be used for auctioning, replenishment of RBI's gold reserves.
Siddhivinayak to deposit 44 kg gold ornaments with State Bank of India
Any liquid money that gold replaces for CRR or SLR compliance will allow banks to use this 'extra' cash for lending to borrowers
'An asset must generate income. Equities yield dividends, bonds pay coupons, deposits give interest, and real estate earns rent.' 'Gold, silver, and even Bitcoin produce no income, they merely store value. So, they should not be compared to productive assets.'
Lenders feel temples still have a few apprehensions.
Banks can also allow the depositors to deposit their gold directly with the refiners.
The bank will be responsible for taking the mixed gold to mint and getting it purified.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
India has 20,000 tonnes of idle gold; gold is an important aspect of women empowerment: PM.
Banks and friendly neighbourhood jewellers can serve as good channels to provide liquidity for gold deposits with built-in incentives for them, suggests Harsh Roongta.
Those who have binged on credit must spend less, cut discretionary expenses, and focus on repayment.
Deposit certificates will also be exempt from capital gains tax.
Gold schemes are offering attractive returns to investors.
It will help to stop widening of Current Account Deficit.
'In the case of corporate credit, especially to AAA borrowers, lenders will have to take a fresh look at pricing.'
Here's what Indian investors diversifying into equities, ETFs, and real estate abroad to manage risk, returns, and currency exposure must watch out for.
The fear of losing purchasing power due to inflation and low-interest rates has led many to explore safe alternatives to fixed deposits with high returns
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