New gold bond schemes begin

Prime Minister Narendra Modi launched Gold Monetisation Scheme, Gold
Sovereign Bond Scheme and the Gold Coin and Bullion Scheme on November
5, in New Delhi. Gold coin and bullion is a part of the Gold
Monetisation Programme with 24 karat purity and 999 fineness and will
carry advanced anti-counterfeit features and tamper proof packaging.
The coin will be the first ever national gold coin minted and will
have the national emblem of Ashok Chakra engraved on one side and
Mahatma Gandhi on the other. Initially coins are available in
denominations of 5 and 10 grams. A 20 gram bullion is also available
and 15,000 coins of 5gm, 20,000 coins of 10 gm and 3,750 of  bullions
of 20 gm will be available through specified bank branches and post

Gold Monetisation
GMS replaces Gold Deposit Scheme, 1999 but deposits under the GDS will
be allowed till maturity. The minimum deposit shall be raw gold (bars,
coins, jewellery excluding stones and other metals) equal to 30 grams
of gold. Gold will be accepted at Collection and Purity Testing
Centres certified by Bureau of Indian Standards and certificates will
be issued by banks. Designated banks will accept gold deposits under
short term (1-3 years) bank deposit (5-7 years) and long term (12-15
years) Government Deposit Schemes. Interest rate in the medium term
bonds is 2.25% and for long term bonds is 2.5% for bonds issued in

Sovereign Gold Bond Scheme
Sovereign Gold Bonds will be issued by RBI with a maximum of 500 grams
per head in multiple tranches. Applications for the bond under the
first tranche will be accepted from November 5 to 20. Bonds will be
issued on November 26 through banks and designated post offices in
multiples of gram(s) of gold with a basic unit of 1 gram for 8 years
with exit option from 5th year. Price of Bond will be fixed in Indian
Rupees on the basis of the previous week’s (Monday–Friday) simple
average of closing price of gold of 999 purity published by the India
Bullion and Jewellers Association Ltd. investors will be issued a
Stock/Holding Certificate. Bonds are eligible for conversion into
demat form and can be used as collateral for loans.

Medaram Jathara

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