Gold monetisation scheme: 2% interest likely on gold deposits

NEW DELHI: The government is gearing up to launch the gold monetisation scheme around Diwali with an interest rate of 1.5-2 per cent on gold deposits, said a senior finance ministry official.

As regards the sovereign gold bond scheme, the government aims to raise Rs 15,000 crore and the timing of the launch will be decided in consultations with the Reserve Bank of India.

The interest rate on gold bonds, the official said, is expected to be 2-3 per cent.

The Cabinet had yesterday approved the gold monetisation and the bond schemes, which were earlier announced in the Budget with an aim to curb demand for physical gold and fish out idle gold lying with temples, trusts and households.

"We'll review the gold scheme and gold bonds after a year based on the response," the official said. The schemes would be notified within two months.

Sovereign gold bonds will be offered in tranches and the interest would be payable in the rupee.

The proposal to classify gold deposits as CRR and SLR has been rejected by RBI and hence, it has been withdrawn from the final plan of the scheme.