The Centre has launched three schemes to encourage Indians to put thousands of tonnes of gold stacked away in households and temples into productive use and thus help reduce import of the metal. Here is a quick lowdown on how the scheme works, and how it helps the government and you.
How does it help you?
Gold lying idle at home can now earn you an interest of 2.5% per annum, with no worries about how to keep it safe.
How does it help govt?
Consolidates gold reserves and reduces import, thus reducing worries about India’s current account deficit.
How does the scheme work?
Step 1 Get your jewellery tested at any of the 355 Bureau of Indian Standards (BIS)-certified hallmark centres to find out the amount of gold and purity.
Step 2 Ornaments will be cleaned and gemstones (if embedded) returned. Jewellery will then be melted and converted to bars or coins. You take it back or take a certificate
Step 3 Deposit certificate in a bank, get gold savings account
Step 4 You will now get an interest on the amount of gold
Step 5 When you wish to retrieve the gold, you can take a certificate mentioning the amount of gold in your account to a jeweller and get the gold in the form of a bar
Obsessed with gold
Value of gold in Indian households is worth Rs. 52 lakh crores
The current account deficit is Rs 1.65 lakh crore or 1.3% of GDP
India imports 1,000 tonnes gold annually . It is the third-most imported commodity