Glitter of government”s gold schemes to shine on Diwali eve”

On the eve of Diwali, the government will launch important gold-related schemes, including the Gold Monetisation, Prime Minister Narendra Modi announced on Sunday, expressing confidence that it will give a new direction to the economic development.

In his monthly radio address, Modi said the programme should be ready before Dhanteras next month, a festival when it is considered an auspicious period to buy gold.

Under the gold monetisation scheme, people can deposit gold with banks and earn an interest on it. The Banks will be allowed to accept deposits of a short-term with maturity ranging between one and three years; a medium-term with a five to seven years horizon; and a long-term deposit maturing in 12-15 years.

Prime Minister Narendra Modi at the sacred golden altar at the Lord Venkateswara temple at Tirumala, Tirupati. “Earlier, we used to keep our gold in locker. Under this, you can deposit your gold in a bank and the bank will pay interest to you for that like on your cash”, Mr Modi said.

“Gold can be converted from dead money to an economic force”.

“Please, don’t let your gold be dead money”.

The scheme is meant to mobilise part of the estimated 20,000 tonnes of gold held by Indian homes and institutions and reduce India’s reliance on the import of gold. The country consumes almost 1,000 tonnes of gold every year, most of it imported, and gold is the second-biggest expense on the import bill after oil. The move will also help to cut expensive imports. “I’m happy to announce that promises made during the Budget will be delivered before Diwali and Dhanteras when gold is purchased”. Diwali is on November 11.

As far as the Sovereign Gold Bonds scheme is concerned, Mr Modi said people will not get any gold bar but a piece of paper which will have the same value as that of gold.

On the occasion, he also said India will mint its own gold coins which will carry the Ashok Chakra emblem. Why shouldn’t we have a swadeshi mark? Sources in the EC said it has not found any violation of model code in PM Modi’s previous episode of the programme aired in September.

The government will start with gold coins of 5 gm and 10 gm with Ashok Chakra. Along with this, 20 gms cold coin will also be available. “I want your cooperation in this”, he added.