Introduction

The Gold Monetisation Scheme (GMS 2015) is an initiative launched by the Government of India, designed to mobilize idle gold owned by families and institutions, and redirect it towards productive and developmental purposes. This scheme was introduced in 2015 to reduce the country's dependency on gold imports by channeling gold into the domestic market.

What is the Gold Monetisation Scheme?

The Gold Monetisation Scheme (GMS) is a government-backed investment plan aimed at mobilizing idle gold reserves. Under this scheme, individuals can deposit their gold with banks or authorized jewelers for a predetermined period, and in return, they receive a higher quantity of gold as interest or an equivalent value in cash.

Animal ornaments, coins, and bullion can all be deposited, and the terms and conditions are clearly defined.

Key Features of the Gold Monetisation Scheme

Mobilise Idle Gold

The primary objective of GMS is to facilitate the movement of gold from inactive storage to active usage. By providing a lucrative return on gold deposits, the scheme encourages individuals to deposit their gold with the government or authorized financial institutions. This not only benefits the government in terms of increased gold reserves but also the local jewelry industry, as the influx of gold into the market can stimulate demand and production.

Fixed Returns on Gold Deposits

Depositors can earn interest on their gold deposits. Unlike keeping gold in a bank locker, which incurs storage fees, depositing gold under this scheme generates a fixed return. This return is typically higher than the return received from keeping gold in a dormant state, making it a beneficial investment option for gold owners.

Secure Storage

The government provides secure storage facilities for gold deposits. Depositors have the peace of mind knowing that their gold is stored in a secure and regulated environment, managed by reputable financial institutions. This removes the need to worry about a physical storage locker, reducing the risks associated with home storage.

Tax Benefits

One of the significant benefits of the Gold Monetisation Scheme is the tax exemption. Interest earned from gold deposits under this scheme is free from capital gains tax, wealth tax, and income tax. Additionally, if the gold value increases, you are not required to pay capital gains tax on the increased value or the interest received.

Flexibility in Redemption

Depositors have the flexibility to choose between cash and gold upon redemption. This provides an additional layer of convenience for individuals who may prefer to have immediate access to cash or desire to keep their gold.

To further understand and participate in the Gold Monetisation Scheme, a video tutorial is available. The video provides detailed guidance on the process, benefits, and various aspects of the scheme, making it easy for individuals to get started.

The GOI's motive behind the scheme is to leverage the power of gold to benefit the wider economy. By providing a secure and profitable avenue for gold ownership and utilization, the scheme aims to contribute to economic growth and stability.

In conclusion, the Gold Monetisation Scheme is a comprehensive and beneficial initiative for those seeking to maximize the value of their gold investments. With its focus on security, profitability, and convenience, the scheme encourages the mobilization of dormant gold and its utilization for productive purposes.

If you have any questions or need more information, please refer to the video tutorial or contact your local financial institution for assistance.