Gold Monetization Scheme (GMS)
Certainly, Rajalaxmi Manda, I’d be happy to provide you with the details of the Gold Monetization Scheme (GMS) promoted by Prime Minister Narendra Modi, along with its advantages, disadvantages, and eligibility criteria.
Scheme Overview:
The Gold Monetization Scheme (GMS) was introduced by the Government of India, aiming to mobilize the gold lying idle with households and institutions in the country. The scheme was launched to encourage people to deposit their gold holdings with banks in return for interest-bearing deposits or other forms of returns. The deposited gold is then utilized by the banks to meet the country’s domestic requirements for gold, reducing the dependency on imports.
Advantages:
Interest Earnings: Participants in the scheme can earn interest on their idle gold holdings, which would otherwise not yield any returns.
Safety and Security: By depositing gold with banks, individuals ensure the safety and security of their precious metal, reducing the risk of theft or loss.
Utilization of Idle Gold: The scheme facilitates the productive use of idle gold assets, contributing to the country’s economic growth and reducing the need for importing gold.
Financial Inclusion: It provides an avenue for individuals, including rural households, to participate in the formal financial system, thereby promoting financial inclusion.
Hedge Against Inflation: The interest earned through the scheme can act as a hedge against inflation, helping individuals preserve the value of their savings.
Eligibility Criteria:
The eligibility criteria for participating in the Gold Monetization Scheme typically include:
Individuals: Resident Indians, including individuals, Hindu Undivided Families (HUFs), trusts, and charitable institutions, are eligible to participate.
Types of Gold: Gold jewelry, coins, bars, etc., meeting the purity standards prescribed by the government, are accepted under the scheme.
Minimum Deposit: There’s usually a minimum quantity of gold required to be deposited to participate in the scheme, which varies across banks.
Documentation: Participants need to provide necessary documentation, including proof of identity, address, and ownership of the gold being deposited.
It’s worth noting that the specifics of the scheme, including interest rates, eligibility criteria, and operational details, may vary over time and across different banks. Therefore, individuals interested in participating in the Gold Monetization Scheme should inquire with their respective banks for the most up-to-date information.
Warm regards,
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