One of them is the PM Gold Placement Scheme(Pradhan Mantri Gold Monetization Scheme). In our country, about 1000 tons of gold is imported. India is the largest gold importer in the world.
The Prime Minister Gold Monetization Scheme will convert gold into productive assets in our country India. This scheme is a modification of GDS and GML. The new gold monetization scheme will replace existing global distribution systems.
क्या है गोल्ड मोनेटाइजेशन स्कीम | Gold Monetization Scheme 2020 | gold monetization scheme UPSC | introduction of gold monetization scheme | Gold Monetization Scheme in Hindi
Pradhan Mantri Gold Monetization Scheme 2020-21
Gold owners simply need to open their gold savings and hand their gold over to the centers that assess the purity of the gold and give the gold owner a receipt. Banks will be informed of the true value of your gold by examining the positions. The value of gold will be deposited by the bank in your savings account.
Banks collect the gold deposited by the goldsmith and send it to refineries. Gold will melt and turn golden bricks. The bank can use this gold to make loans for jewelry, which will pay interest to the banks. It is like an investment account for a gold owner and has a maturity period.
Once this period expires, the bank will return the gold to the gold owner at a fixed interest. Interest will also be paid in gold. The Prime Minister’s Gold Monetization Scheme can be very beneficial to gold owners.
Deposits under the Prime Minister’s scheme to Income Gold
The gold owner can deposit gold for a long, medium, or short period under the PM Gold Monetization Scheme.
|For long term deposits||Tenure: 1-3 years|
|For medium-term deposits||Tenure: 5-7 years|
|For short term deposit||Tenure: 12-15 years|
Eligibility for the Pradhan Mantri Gold Monetization Scheme 2020
- All Indian citizens can invest in this scheme.
- This gold conversion scheme accepts at least 30 grams of gold in the form of jewelry, coins, or a bar.
- There is no maximum investment in gold within the framework of the Prime Minister’s income-generating plan. This allows early withdrawal after the minimum period of closure, but you will have to pay a fine for that.
- All commercial banks can implement this scheme.
- You will get 2.5% interest annually and it is higher than previous gold investment programs.
How can banks use Gold
The bank can loan gold for jewelry
This is the obvious way. The bank can loan gold for jewelry and earn a fixed interest on that gold lending. It can also reduce the total gold import and help reduce the government’s CAD. A current account deficit occurs when the value of imported goods/services exceeds the value of exported goods/services.
The current account deficit means that the country uses international financial assistance to operate. CAD is the type of liability that needs to be paid. The CAD downgrade is good for the economy, so I announce this plan for the good economy in India.
The bank can sell gold to foreign countries
Under Pradhan Mantry’s gold monetization scheme, the bank can sell gold reserves abroad. This may be the best way to invite foreign currencies in the form of profits.
How is Works Pradhan Mantri Gold Monetization Scheme
The whole process is similar to the normal banking process. Interested jewelers or homeowners will need to deposit gold. After using the initial test, gold owners will be informed of the true value of their gold. Once the customer or owner of the gold is satisfied with the value of the gold, they must fill out the KYC form to agree to the gold melt.
If the gold owner is not satisfied with the value of pure gold after testing the purity of gold, he can withdraw the gold. The initial test follows a fire essay test. Clients will receive a certificate containing information about the purity and amount of gold. The bank opens gold savings account for customers.
Note – Investors can stop their money in bonds instead of buying gold. Bonds will be available in paper or Demat form. These bonds will be issued by the RBI and are as useful as physical gold.
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