India to introduce gold deposit accounts, no mention of import duty
   

India to introduce gold deposit accounts, no mention of import duty

India to introduce gold deposit accounts, no mention of import duty New Delhi: India will introduce gold deposit accounts to utilise the 20,000 tonnes available within the country and launch a sovereign bond as an alternative to buying the metal, moves that are likely to cut imports into the biggest gold consumer.

Finance Minister Arun Jaitley however did not make any mention of cutting the 10 percent import duty in his speech on Saturday unveiling the budget for the next fiscal year starting April 1.

India ships in 800-1,000 tonnes of gold a year despite massive stocks in the country that is neither traded nor monetised, Jaitley said.

Without setting a timeline, Jaitley said the government will introduce a gold monetisation scheme which will replace the present gold deposit and gold metal loan schemes.

Gold depositors will earn an interest on their metal account, while jewellers can obtain loans in it. Banks and other dealers will be able to monetize this gold.

The government will also develop a sovereign gold bond as an alternative to purchasing gold. The bonds will carry a fixed rate of interest and holders will be able to redeem them in cash on the face value of gold.

Jaitley said work will also start on an Indian gold coin to cut demand for foreign-minted coins.

"Such an Indian gold coin would help reduce the demand for coins minted outside India and also help to recycle the gold available in the country," he said.
First Published: Saturday, February 28, 2015, 13:48
 
 
Post Your Comment
 Your comment(s) on this article
 
 
     
  Name
  Place
  Email
  Comment
TERMS OF USE:
The views represented here are not neccesarily endorsed by www.zeenews.com and its allied websites. All messages will be moderated and no message that has inflammatory, abusive, derogatory language or any language deemed unfit for publication by the editor will be displayed. Though it will be endeavoured that as many messages as possible be displayed, there will be time lag between the submission and publication of the messages. The website reserves the right to publish or reject any message.


 
latest videos  
Q&A With fm Read More »
Budget will provide breather to aam aadmi: Pranab

FM expressed confidence that the policy road map prescribed in the Budget will steer the course of the economy.

opinion poll
Will the Budget be able to solve India`s deficit woes?
Yes
No
Maybe
zee exclusive Read More »
A survivor’s Budget, at best!

As Pranab Mukherjee read out his Budget speech the politician in him was right up front.

Education not a priority in the Budget 2012-13 Union Budget 2012: What does it offer to women?
   
Food security still a distant dream Measly spending on major social sectors
 
Budget Plus