Prime Minister Narendra Modi’s gold related schemes- Gold Monetisation Scheme (GMS), Gold Sovereign Bond Scheme and the Gold Coin and Bullion Scheme have evoked mixed response from a cross-section of people in Vijayawada.
Ahead of the festive season, Mr. Modi launched schemes what he calls sone pe suhaga, asking people to take advantage of the ‘golden opportunity’ to help India march to a golden period.
“From what I understand, it will encourage people to buy gold but women who are fond of wearing gold ornaments rather than keeping it locked in bank lockers will more or less remain unaffected. Most gold purchases are by women and women like to wear, touch, hold and feel their jewellery,” says Jogu Prasad, franchisee of Tanishq Gold, Vijayawada.
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She however, adds that the schemes are good for economy and of course for those who keep their gold idle in lockers.
“It is actually a win-win situation. For fear of theft, we keep gold ornaments in lockers and pay rent for it. Here is a scheme which offers safety plus interest money on the yellow metal we own. Shortage of lockers is an issue which can also be taken care of,” says Chandrabhanu, a housewife from Vrundavan Colony. It is said that investors will have to disclose their permanent account number, registered with the income tax department, if the value of gold is more than Rs. 50,000. Some people fear it is a way for the government to keep a tab on the source.
Another concern is the likely loss of 20-30% of the weight of jewellery as it is melted at certified centres at the cost of the depositor,” pointed out Jagadeeshwar Rao, a stock analyst from Gayathrinagar area.
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“My wife may get a shock when she sees the actual value of her jewellery and I may end up receiving a tax notice,” said a local banker .