All you want to know about the Gold Monetisation Scheme

The monetisation scheme allows people to earn some regular interest on their gold deposits in any physical form - jewellery, coins or bars. This gold will earn interest based on gold weight and also the appreciation of the metal value. The depositors can get back their gold in the equivalent of 995 fineness gold or rupees as they desire (the option is to be exercised at the time of deposit).

Benefits of depositing under the Gold Monetisation scheme:

• The gold monetisation scheme earns interest for the jewellery lying in lockers. Broken jewellery or jewellery out of fashion can earn interest in gold.
• Coins and bars can earn interest apart from the appreciation of value
• Gold will be securely maintained by the bank.
• Redemption is possible in physical gold or rupees, hence giving further earning opportunity.
• Earnings are exempt from capital gains tax, wealth tax and income tax. There will be no capital gains tax on the appreciation in the value of gold deposited, or on the interest earned on it.

The designated banks will accept gold deposits under the short term (1-3 years) bank deposit as well as medium (5-7 years) and long (12-15 years) term government deposit schemes.

Verify the purity of  gold

It is important for the depositors to check their gold's purity through Collection and Purity Testing Centres. The depositors can take their gold in any form to these centres where they will assess the gold and give a certificate on purity and gold content, once a person decides to deposit the gold in one of the deposit schemes.

Eligibility for the depositor

Resident Indians (Individuals, HUF, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations and Companies) can make deposits under the scheme. The opening of gold deposit accounts will be subject to the same rules with regard to customer identification as are applicable to any other deposit account.

What will the banks do with the gold

The designated banks may sell or lend the gold accepted under the short-term bank deposit to MMTC for minting gold coins and to jewellers, or sell it to other designated banks participating in the scheme.