Benefits of Gold Monetization Scheme
A key challenge of holding gold is to store it safely because of the risk of theft and loss. The gold kept in bank lockers also incurs annual locker rent. Therefore the gold monetization scheme is a safer way of storing gold and also earning interest on the deposit which is an added advantage. There is flexibility to deposit as low as 30 grams of gold and also to withdraw as per the requirement by paying some charges. A portion of gold deposited by different individuals and companies is circulated in the market to help reduce gold imports. Some can be given to the RBI for minting gold coins that can be sold. Also, at the end of the maturity period, both the capital gain and the interest are tax-free. There won’t be any income tax applied to withdrawals. This scheme also allows earning additional income over and above the increased price of gold, up to a maximum of 2.5 percent each year.