PM Modi to launch first 'India gold coin' and other gold schemes today

Zee Media Bureau

New Delhi: Prime Minister Narendra Modi will on Thursday launch the first ever 'India gold coin' bearing Ashok Chakra in a move to cash in on the festive season of Diwali and Dhanteras which is an auspicious ocassion for Indians to invest in the yellow metal.

Besides the gold coin, Modi will also launch the Gold Monetisation Scheme (GMS) and Gold Sovereign Bond Scheme.

According to the Finance Ministry, the coins will be available in denominations of 5 and 10 grams at initial stage.

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About 15,000 coins of 5 gm, 20,000 coins of 10 gm and 3,750 gold bullions will be made available through MMTC outlets, a Finance Ministry statement said.

The Indian Gold coin is unique in many aspects and will carry advanced anti-counterfeit features and tamper proof packaging that will aid easy recycling, it said.

These coins will be distributed through designated and recognised MMTC outlets.

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The GMS will replace the existing Gold Deposit Scheme, 1999.

However, the deposits outstanding under the Gold Deposit Scheme will be allowed to run till maturity unless the depositors prematurely withdraw them, it said.

"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," it said.

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The minimum deposit at any one time shall be raw gold (bars, coins, jewellery excluding stones and other metals) equivalent to 30 grams of gold of 995 fineness, it said, adding, there is no maximum limit for deposit.

"The deposit certificates will be issued by banks in equivalence of 995 fineness of gold. The principal and interest of the deposit under the scheme will be denominated in gold," it said.

The designated banks will accept gold deposits under the Short Term (1-3 years) Bank Deposit (STBD) as well as Medium (5-7 years) and Long (12-15 years) Term Government Deposit Schemes.

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While the former will be accepted by banks on their own account, the latter will be on behalf of the government. There will be provision for premature withdrawal subject to a minimum lock-in period and penalty to be determined by individual banks.

With regard to Sovereign Gold Bonds, it said, the RBI in consultation with Government, has decided to issue such instruments.

"Applications for the bond will be accepted from November 5-20. The Bonds will be issued on November 26. The Bonds will be sold through banks and designated post offices as may be notified. The borrowing through issuance of Bond will form part of market borrowing programme of Government," it said.

With PTI Inputs