Imagine each gram of gold floating around in the market as one thousand rupee note and being exchanged as easily as the note. Since the note is easily available and easily tradeable, there is no incentive to build up an inventory for future needs or for fear of its price going up, unless the notes have been earned through illegal means..!\u00a0What is more, if the note is deposited in the bank, it fetches an interest also and on the other hand, there is a cost attached to\u00a0maintaining and safeguarding on your own. The government’s gold monetisation scheme, as even the name suggests, is essentially a move on this direction.<\/p>\n
The news of Tirupati temple depositing 1,311 kg of gold (worth approx Rs 400 crore) with PNB brings back the spotlight on the scheme. The scheme was first introduced in 1999 (again during NDA government),\u00a0but could not generate sufficient interest for a variety of reasons. The scheme relaunched in Nov’2015, and modified twice since then, is also a result of the consultation process being adopted by the policy makers, which seems to be bearing fruits. Yet, this deposit is more like a drop in the ocean and is negligible compared to the amount of gold lying idle within the country.<\/p>\n
As per the scheme, any individual or a trust can deposit gold with any scheduled commercial banks, which are participating in the scheme. However, the physical deposit actually happens at\u00a0Collection and Purity Testing Centre (CPTC). The\u00a0initial testing of the metal is done in the presence of the customer (with CCTV recording..!), enhancing the credibility of the process. The customer is even free to disagree with the test result, change his mind and go back without doing the deposit (but will have to pay for the test).<\/p>\n
Contd..<\/p>\n
(Image courtesy of Ponsulak at FreeDigitalPhotos.net)<\/p>\n
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Imagine each gram of gold floating around in the market as one thousand rupee note and being exchanged as easily as the note.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[860],"tags":[205,354,355,34],"class_list":["post-719","post","type-post","status-publish","format-standard","hentry","category-policy-2","tag-cptc","tag-gold","tag-gold-monetisation-scheme","tag-rbi","membership-content","access-restricted"],"yoast_head":"\n