On Thursday (5 November), India Prime Minister, Narendra Modi launched Indian Gold Coin, Gold Monetisation Scheme and Sovereign Gold Bonds scheme. The programme plan to lure tonnes of gold from households into the banking system and reduce the physical demand for gold.
At least 20,000 tonnes of the precious metal worth $800 billion lying idle with households.
The Indian Gold Coin will be the first ever Indian national gold coin with the national emblem of Ashok Chakra engraved on one side and the face of Mahatma Gandhi on the other side.
Initially, the coins will be available in denominations of 5 and 10 grams. A 20 grams bar/bullion will also be available. The Indian Gold Coin is unique in many respects and will carry advanced anti-counterfeit features and tamper-proof packaging that will aid easy recycling.
The Indian gold coin will be of 24 karat purity and 999 fineness. All coins will be hallmarked as per the BIS standards with tamperproof packaging and advanced anti-counterfeit features on the coin cover make it very safe and easily recyclable.
This coin will distributed through designated & recognised Metals and Minerals Trading Corporation of India (MMTC) outlets.
The Gold Monetisation Scheme (GMS), 2015 will offer option to resident Indians to deposit their precious metal and earn an interest of up to 2.5 per cent; while under the Sovereign Gold Bonds Scheme, investors can earn an interest rate of 2.75 per cent per annum by buying paper bonds.
Speaking on the occasion, Modi said India has surpassed China as the world's largest gold consumer, buying 562 tonnes of yellow metal so far this year, against china's 548 tonnes.
"People should take advantage of the golden opportunity to help India march to a golden period," he said.
Observing that there is no reason for the country, which has 20,000 tonnes of gold lying idle with households and institutions, to remain poor, he said, with some efforts and right policies India can get rid of this tag of (poor nation).
Recalling India's tradition of savings and culture of empowering women with gold, he said in a lighter vein, even the RBI Governor Raghuram Rajan will have to recognise the difference between "arthashastra (economics) and grahshastra (home economics)."
Various schemes launched today will increase the availability of gold and bring down its import.
India currently imports around 1,000 tonnes of gold every year, leading to outflow of forex reserves.
Modi described the schemes as an example of "sone pe suhaaga" (icing on the cake). The Prime Minister spoke of the great bond of trust that the family goldsmith enjoys in India.
He said that once they gain familiarity with these plans, they could become the biggest agents of the schemes. He described the launch of the Indian Gold Coin, bearing the Ashok Chakra, as a matter of pride for the nation and said that people would no longer have to depend on foreign-minted gold bullion or coins.
The Prime Minister also launched a website on these schemes and distributed Certificates of Investment to six initial investors.
