Gold Monetization Scheme introduced to curb trade imbalance as well reduce the exchequer's import bill, saw its complete roll-out as the ministry now approves its auction.
Rs. 2000 crore worth gold stocks invested as part of the gold monetization scheme which is otherwise lying idle in the bank can now be sold to jewelers. The auction policy calls for sale of gold stocks of medium and long-term investors by the notified agencies and the proceeds shall be credited to the government's account with the RBI. The move is likely to impact and reduce gold import in the same proportion.
The gold monetization scheme though far from success, fetches tax-free return of a maximum of 0.6% for gold investments that are made for short term i.e for a period of three years; medium term investment shall fetch 2.25% and long term- investor would get 2.5%.
The interest amount is denominated in gold.