{"id":205,"date":"2015-07-10T11:26:35","date_gmt":"2015-07-10T05:56:35","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=205"},"modified":"2023-12-25T00:18:14","modified_gmt":"2023-12-24T18:48:14","slug":"gold-monetization-scheme-draft-highlights","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/gold-monetization-scheme-draft-highlights\/","title":{"rendered":"HIGHLIGHT ON GOLD MOBILIZATION"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f31494ce4a5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f31494ce4a5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/gold-monetization-scheme-draft-highlights\/#GOLD_MOBILIZATION_SCHEME_DRAFT\" title=\"GOLD MOBILIZATION SCHEME (DRAFT)\">GOLD MOBILIZATION SCHEME (DRAFT)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/gold-monetization-scheme-draft-highlights\/#Detailed_Draft_Gold_Monetization_Scheme\" title=\"Detailed Draft Gold Monetization Scheme\">Detailed Draft Gold Monetization Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/gold-monetization-scheme-draft-highlights\/#Opening_of_Gold_Savings_Account_with_the_banks\" title=\"Opening of Gold Savings Account with the banks:-\">Opening of Gold Savings Account with the banks:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/gold-monetization-scheme-draft-highlights\/#Utilization_of_Deposited_Gold\" title=\"Utilization of Deposited Gold\">Utilization of Deposited Gold<\/a><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25761\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Gold-.jpg\" alt=\"Gold coin\" width=\"1032\" height=\"1139\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Gold-.jpg 1032w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Gold--272x300.jpg 272w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Gold--928x1024.jpg 928w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Gold--768x848.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Gold--800x883.jpg 800w\" sizes=\"(max-width: 1032px) 100vw, 1032px\" \/><\/h2>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"GOLD_MOBILIZATION_SCHEME_DRAFT\"><\/span><span style=\"color: #000080;\"><strong>GOLD MOBILIZATION SCHEME (DRAFT)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Seeking to mobilize idle gold worth up to Rs 60 lakhs crore held by households and institutions, government yesterday proposed a new scheme offering\u00a0<a href=\"https:\/\/Read more for related blogs are ; How to file a return of TDS online New revise TDS\/TCS due date for filing Return and Payment for the year 2020 key features of TCS on goods sale section-206cRead more for related blogs are ; How to file a return of TDS online New revise TDS\/TCS due date for filing Return and Payment for the year 2020 key features of TCS on goods sale section-206c\">tax<\/a>-free interest\u00a0on depositing the yellow metal (Gold) with banks. The scheme, which is proposed to be initially introduced only in select cities, will be later on launched in all the parts of the country.<\/p>\n<p style=\"text-align: justify;\">The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewelers to obtain loans in their metal account. Banks\/other dealers would also be able to monetize this gold.<\/p>\n<p style=\"text-align: justify;\">The Finance Ministry has sought comments from stakeholders on the draft gold monetization scheme by\u00a0June 2.<\/p>\n<p style=\"text-align: justify;\">The draft gold monetization scheme also provides for incentives to the banks, while individuals and institutions can deposit as low as 30 Gms of gold, while the interest earned on it would be exempt from income tax as well as capital gains tax.<\/p>\n<p style=\"text-align: justify;\">As per the draft guidelines, a person or institution holding surplus gold can get it valued from BIS-approved hallmarking centers, open a Gold Savings Account in banks for a minimum period of one year and earn interest in either cash or gold units.<\/p>\n<p style=\"text-align: justify;\">Under the scheme, the bank interest to the customers will be payable after 30\/60 days of opening of the Gold Savings Account.<\/p>\n<p style=\"text-align: justify;\">The amount of interest rate to be given is proposed to be left to the banks to decide. Both principal and interest to be paid to the depositors of gold will be &#8216;valued&#8217; in gold. For example, if a customer deposits 100 Gms of gold and gets 1 per cent interest, then, on maturity he has a credit of 101 Gms.<\/p>\n<p>Read more for related blogs are ;<\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/how-to-file-tds-return-online\/\">How to file a return of TDS online<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/new-revise-tds-tcs-return-filing-due-date-payment-due-date\/\">New revise TDS\/TCS due date for filing Return and Payment for the year 2020<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/key-features-of-tcs-on-goods-sale-section-206c-1h-applicable-from-1-october-2020.html\">key features of TCS on goods sale section-206c<\/a><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">With regard to redemption, the guidelines provides that customers will have the option of getting it back either in cash or in gold which will have to be exercised at the time of making the deposit.<\/p>\n<p style=\"text-align: justify;\">The tenure of the scheme has been proposed at a minimum 1 year and with a roll out option in multiples of one year. It would be like a fixed deposit, breaking of lock-in period will be allowed.<\/p>\n<p style=\"text-align: justify;\">Banks may sell the gold to generate foreign currency. The foreign currency thus generated can then be used for onward lending to exporters or importers.\u00a0Bank may convert mobilized gold into coins for onward sale to their customers and can be used for lending to jewelers.<\/p>\n<p style=\"text-align: justify;\">To Incentive banks, it is proposed that they may be permitted to deposit the mobilized gold as part of their CRR\/SLR requirements with RBI. However this aspect is still under examination.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Detailed_Draft_Gold_Monetization_Scheme\"><\/span><span style=\"color: #000080;\"><strong>Detailed Draft Gold Monetization Scheme<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Purity Verification and Deposit of Gold:-<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">First of all the person seeking to monetize his gold will have to approach a Purity Testing Centre for verification of purity.\u00a0For this purpose, Bureau of Indian Standards (BIS) certified Hallmarking Centers\u00a0(which need not necessarily be jewelers) will act as \u2018Purity Testing Centers\u2019.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Preliminary Test:<\/strong><\/span>\u00a0In a Purity Testing Centre, a preliminary XRF machine-test will be conducted to tell the customer the approximate amount of pure gold. If the customer agrees, he will have to fill-up a Bank\/KYC form and give his consent\u00a0for melting the gold. If the customer does not agree to the XRF machine test, he can take his jewellery back at this stage.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Fire Assay Test:<\/strong><\/span>\u00a0After receiving the customer\u2019s consent for melting the gold for conducting a further test of purity, at the same collection centre, the gold ornament will then be cleaned of its dirt, studs, meena etc. The studs will be handed-over to the customer there itself. Net weight of the jewellery will be taken after such removals and told to the customer. Then, right in front of the customer the jewellery will be melted and through a fire assay, its purity will be ascertained. These centers have viewing galleries from where the customer can see the entire process.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Deposit of Gold:<\/strong><\/span>\u00a0When the results of the fire assay are told to the customer, he has a choice of either refusing to accept, in which case he can take back the melted gold in the form of gold bars, after paying a nominal fee 1 to that centre; or he may agree to deposit his gold\u00a0(in which case the fee will be paid by the bank). If the customer agrees to deposit the gold, then he will be given a certificate by the collection centre certifying the amount and purity of the deposited gold.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Conditions:<\/strong><\/span>\u00a0The minimum quantity of gold that a customer can bring is proposed to be set at 30 grams, so that even small depositors are encouraged. Gold can be in any form (bullion or jewellery).<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Opening_of_Gold_Savings_Account_with_the_banks\"><\/span><span style=\"color: #000080;\"><strong>Opening of Gold Savings Account with the banks:-<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Gold Savings Account:<\/strong><\/span>\u00a0When the customer produces the certificate of gold deposited at the Purity Testing Centre, the bank will in turn open a \u2018Gold Savings Account\u2019 for the customer and credit the \u2018quantity\u2019 of gold into the customer\u2019s account. Simultaneously, the Purity Verification Centre will also inform the bank about the deposit made.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Interest payment by banks:<\/strong><\/span>\u00a0The bank will commit to paying an interest to the customer which will be payable after 30\/60 days of opening of the Gold Savings Account. The amount of interest rate to be given is proposed to be left to the banks to decide. Both principal and interest to be paid to the depositors of gold will be \u2018valued\u2019 in gold. For example if a customer deposits 100 Gms of gold and gets 1 per cent interest, then, on maturity he has a credit of 101 Gms.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Redemption:<\/strong><\/span>\u00a0The customer will have the option of redemption either in cash or in gold, which will have to be exercised in the beginning itself (that is, at the time of making the deposit).<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Tenure:<\/strong><\/span>\u00a0The tenure of the deposit will be minimum 1 year and with a roll out in multiples of one year. Like a fixed deposit, breaking of lock-in period will be allowed.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Tax Exemption:<\/strong><\/span>\u00a0In the Gold Deposit Scheme (1999), the customers received exemption from Capital Gains Tax, Wealth tax and Income Tax. Similar tax exemptions are likely to be made available to the customers in the GMS after due examination.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Utilization_of_Deposited_Gold\"><\/span><span style=\"color: #000080;\"><strong>Utilization of Deposited Gold<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>CRR\/SLR:<\/strong><\/span>\u00a0To incentivize banks, it is proposed that they may be permitted to deposit the mobilized gold as part of their CRR\/SLR requirements with RBI. This aspect is still under examination.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Foreign Currency:<\/strong><\/span>\u00a0Banks may sell the gold to generate foreign currency. The foreign currency thus generated can then be used for onward lending to exporters \/ importers.<\/p>\n<p style=\"text-align: justify;\">Coins:\u00a0Bank may convert mobilized gold into coins for onward sale to their customers<\/p>\n<p style=\"text-align: justify;\">Exchanges:\u00a0Banks to buy and sell on domestic commodity exchanges, where mobilized gold can be delivered.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25847\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/gold.jpg\" alt=\"online gold\" width=\"1057\" height=\"900\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/gold.jpg 1057w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/gold-300x255.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/gold-1024x872.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/gold-768x654.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/gold-800x681.jpg 800w\" sizes=\"(max-width: 1057px) 100vw, 1057px\" \/><\/p>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a> or call at 9555 555 480<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>GOLD MOBILIZATION SCHEME (DRAFT) Seeking to mobilize idle gold worth up to Rs 60 lakhs crore held by households and institutions, government yesterday proposed a new scheme offering\u00a0tax-free interest\u00a0on depositing the yellow metal (Gold) with banks. The scheme, which is proposed to be initially introduced only in select cities, will be later on launched in &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,1],"tags":[3045,3043,3042,3048,3044],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/205"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=205"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/205\/revisions"}],"predecessor-version":[{"id":25851,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/205\/revisions\/25851"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}