The government plans to exempt capital gains made at the time of redemption of gold under the Gold Bond Scheme.
- Two schemes are the Sovereign Gold Bond Scheme and the Gold Monetisation Scheme.
- It could bring an estimated 20,000 tonnes of idle gold lying with Indian consumers into the economy and also reduce India’s dependence on gold imports.
- In Gold Monetisation Scheme, gold in any form can be deposited with banks for a period of one to 15 years. This gold will earn interest and redemption will be at the prevailing market value at the end of the tenure of deposit.
- Sovereign Gold Bond Scheme is aimed at customers looking to buy gold as an investment.
- While the gold deposited with banks under the monetisation scheme will be allowed to be sold to jewellers in order to boost domestic supply.
Posted on | The Hindu