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Govt mobilises over 3.1 tonnes gold under gold monetisation scheme

15 Jul 2016 Evaluate

The government has mobilized 3.1 tonnes of idle household and temple gold deposited under the monetisation scheme since its launch in November 2015. However, it’s much lower than 800-1,000 tonnes of annual gold import in which it is estimated that 300 tonnes are for investments, while the balance is jewellery.

The gold under monetisation scheme will facilitate its use for productive purposes, and in the long run, to reduce country’s reliance on the import of gold as well as to earn some regular interest on gold and save carrying costs. Under this scheme, banks are authorised to collect gold for up to 15 years to auction them off or lend to jewellers from time to time. Also depositors earn up to 2.50 per cent interest per annum.

All gold deposits under the scheme have to be made at Collection and Purity Testing Centres’ (CPTC). Currently, there are 46 assaying and hallmarking centres which are qualified to act as CPTC for handling gold under the scheme. Banks can also accept deposits at designated branches, especially from larger depositors.

India imports about 1,000 tonnes of gold every year and the precious metal is the second--highest component of the imports bill after crude oil. The gold monetisation scheme aims to mobilize around 20,000 tonne of idle gold lying with households and temples but not many households have shown interest in the schemes. So far, the government has collected much of the gold under the schemes from temple trusts with a major chunk coming from Tirumala Tirupati Devasthanam (TTD).

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