Gold Bond Scheme Yojana Details
Gold Bond Scheme Yojana has been officially launched ny PM Modi on 5th november 2015. Under this scheme, an individual, any given year, is allowed to buy gold bonds worth maximum of 500 grams of gold. The purchase will be safeguarded against market volatility for a period of 5 to 7 years, which is the lock-in period for the bonds. During this period, the interest earnings against the bonds will be maintained at a steady rate (which of course will be declared after specific time intervals) even if the market rate of interest falls unexpectedly.
The gold bonds will be issued to general public, HUF, Trusts and other organization by Reserve Bank of India on behalf of central government and the bonds will be issued in several denominations. In this case, the denominations will be in form of 1 grams. You have to buy at least 2 units ie at least 2 gms.
You will get a fixed interest rate of 2.75% in this scheme this would be adjusted to the rise and fall of actual gold prices. The gold that government have received in Gold Monitisation Scheme would be used to buy the physical gold in this bond. You can avail loans against these bonds.
- Voter ID,
- Aadhaar Card/PAN or
- TAN /Passport
- Demand for physical gold would decrease this eventually would decrease dollar outflow.
- Now we will get a fixed interest on our most loved metal
- No need to worry about security physical bond
The salient features of the Gold Bond Scheme are mentioned below in a tabular format:
|Purpose||Mobilizing gold reserves spread across Indian families.|
|Capital Gains||Same as in case of holding physical gold through commodity trading.|
|Possible use||Productive usage of gold in Indian economy.|
|Used as collateral against loans.|
|Traded and sold through NSE and BSE.|
|Taxation||Usual taxes will be implemented.|
|Benefits||India’s need for gold import will be reduced.|
|Foreign exchange will not be siphoned out of treasury.|
|Increased market liquidity of gold.|
|Interesting earnings for owners. Holding solid gold in form of jewelry usually doesn’t earn interest for owners.|
|Outer limit||In any given year, users will not be allowed to buy bonds worth greater than 500 grams of gold.|
|Issuance and redemption||Against a fee by National Savings Certificate Agents, financial companies non-banking by nature and banks.|