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.
'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.'
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.
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.
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.
'In the last one year, we have added more than Rs 1.7 trillion, and we are on track.'
'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.'
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
India imported 967 tonnes of gold in 2014-15.
'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
Those who have binged on credit must spend less, cut discretionary expenses, and focus on repayment.
Any liquid money that gold replaces for CRR or SLR compliance will allow banks to use this 'extra' cash for lending to borrowers
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.
Here's what Indian investors diversifying into equities, ETFs, and real estate abroad to manage risk, returns, and currency exposure must watch out for.
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.
India has 20,000 tonnes of idle gold; gold is an important aspect of women empowerment: PM.
Deposit certificates will also be exempt from capital gains tax.
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
Use these loans to meet emergency needs, and not to fund holidays or luxury purchases.
Gold schemes are offering attractive returns to investors.
'In the case of corporate credit, especially to AAA borrowers, lenders will have to take a fresh look at pricing.'
It will help to stop widening of Current Account Deficit.
Only 21 tonnes of gold have been mobilised in the last eight years under the gold monetisation scheme (GMS) which was announced by the Government of India in November 2015. This could be considered as a failure as the scheme has undergone several changes with a revamped GMS announced in April 2021 to improve collections. This figure was released by the World Gold Council (WGC) on Wednesday in its report titled 'Gold Investment Market and Financialisation, in India gold market series'.
'From tariff tensions and border skirmishes to unrest in West Asia.' 'The worst may be behind us. But any further upmove will now have to come from earnings.'
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
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