Prime Minister Narendra Modi on Thursday launched three gold-related schemes, including a coin engraved with the images of national emblem Ashok Chakra and Mahatma Gandhi on its two sides, in a bid to put some 20,000 tonnes of idle gold into productive use.
The other two were a gold monetisation scheme to convert jewellery and other yellow metal assets into interest-bearing deposits, and a sovereign bond scheme with an eight-year tenure, while allowing an exit option after five years.
The interest rates
The monetisation scheme will offer option to resident Indians to deposit their precious metal and earn an interest of up to 2.5 per cent ; while under the Sovereign Gold Bonds Scheme, investors can earn an interest rate of 2.75 per cent per annum by buying paper bonds.
Initially the coins will be available in denominations of 5 grams and 10 grams. A 20 gram bullion will also be available through 125 MMTC outlets.
According to the World Gold Council, an estimated 22,000-23,000 tonnes of gold is lying idle with households and institutions in India.