PM Narendra Modi launches gold monetisation, gold bond scheme

Prime Minister Narendra Modi on Thursday launched gold-related schemes, including a coin engraved with the images of national emblem Ashok Chakra and Mahatma Gandhi on its two sides, in a bid to put some 20,000 tonnes of idle gold into productive use.

"India has 20,000 tonnes of idle gold; gold is an important aspect of women empowerment. The reason behind the success of these schemes will be the women of India," Modi said at the launch of the gold related schemes and coin.

The two schemes launched are the gold monetisation scheme to convert jewellery and other yellow metal assets with people into interest-bearing deposits, and the sovereign bond scheme with an eight-year tenure, while allowing an exit option after five years.

According to the World Gold Council, an estimated 22,000-23,000 tonnes of gold is lying idle with households and institutions in India. The annual imports amount to around 850-1,000 tonnes valued at $35-$45 billion.

"India has surpassed China as world's largest gold consuming nation with 562 tonnes of buying so far this year," Modi said.

In his speech at the second day of three-day Visitors' Conference at Rashtrapati Bhavan, Modi alsow showered praises for President Pranab Mukherjee and said he used to make him understand every issue minutely.

Describing him as a "university in himself" Modi said he had personally got benefitted from his vast knowledge.

"Our President is a university in himself. He is an ocean of knowledge. If anybody asks me what is the biggest benefit of becoming the Prime Minister, I will say that I got an opportunity to be close to him. Whenever I meet him, he is so full of knowledge that he explains everything so minutely along with his own personal experience," Modi said.

Modi told Vice Chancellors of central universities and heads of National Institutes of Technology and IITs that they had the privilege of having direct interaction with the President.

"You people should work under his (the President's) guidance. I don't think anyone can stop us. Sky is the limit. Now if you people will work according to his directions, I believe that the nation will stand benefitted," Modi said.