Cabinet may clear gold monetisation, bond schemes today – Economic Times

NEW DELHI: The Cabinet is likely to take up on Wednesday a string of financial proposals including the Gold Monetization Scheme, which will enable depositors to earn interest on their gold accounts. The other major proposal is introduction of the Sovereign Gold Bonds Scheme.

Under the Gold Monetization Scheme, a person or entity would be allowed to deposit a minimum quantity of 30 grams of gold in any form, bullion or jewellery, for one year in a gold saving account.The banks will decide the in terest rate. Sources said that in order to make the scheme attractive, the interest earned on it may be exempted from income tax, wealth tax and capital gains tax.

They added that before depositing gold into a metal account, customers will have to get its purity checked and they will get a certificate from the collection centre, certifying the amount and purity of the deposited gold. Sources said that the sovereign gold bonds scheme is being introduced to reduce import of the precious metal, which was seen as key contributor to current account deficit.