Glitter of government's gold schemes to shine on Diwali eve

Zee Media Bureau

New Delhi: The government is set to launch a couple of gold schemes on the eve of the festival of Dhanteras and Diwali, Prime Minister Narendra Modi announced on Sunday.

The scheme was announced in the Budget 2051-16, and was passed by the cabinet in the month of September.

Other than the Gold Monetisation Scheme, Sovereign Gold Bonds scheme and gold coins with Ashok Chakra will also be launched, said the PM.

The government aims to raise Rs 15,000 crore through the scheme.

Depositors are likely to get an interest rate of 1.5-2 percent on gold deposits. In Sovereign Gold Bonds scheme, depositors will not get any gold bar but a bond paper of the value of the gold. When the bond paper will be returned, the depositor will get money as per the value of gold at that time. The interest rate on gold bonds is expected to be around 2-3 percent.

The government is launching these schemes with a view to mobilise a part of 20,000 tonnes of idle gold lying with households and temples.

Around 20,000 coins of 5 gm and 30,000 coins of 10 gm would also be made available. Government will review the gold scheme after one year and make necessary amendments if required.

The Prime Minister, during the programme Man ki Baat on All India Radio said that as per the traditional practice, people keep gold in lockers, for which they have to pay to banks. Under the gold schemes, depositors will get interest from the bank on their gold deposits. "Can gold not transform from dead money to live power? This is what we have to do. You support me," Modi said in his 35-minute programme.