While the former will be accepted by banks on their own account, the latter will be on behalf of the Government of India.The designated banks may sell or lend the gold accepted under STBD to MMTC for minting India Gold Coins (IGC) and to jewellers, or sell it to other designated banks participating in GMS.The gold will be accepted at the collection and purity testing centres (CPTC) certified by the Bureau of Indian Standards.Interest on deposits under the scheme will start accruing from the date of conversion of gold deposited into tradable gold bars after refinement or 30 days after the receipt of gold at the CPTC or the bank’s designated branch, as the case may China Wholesale lighters be, and whichever is earlier.Union finance minister Arun Jaitley said the gold lying with an individual could be someone’s personal savings but did not contribute to the country’s development.

Recalling India’s tradition of savings and culture of empowering women with gold, the PM said, in a lighter vein, that even RBI governor Raghuram Rajan would have to recognise the difference between "arthashastra (economics) and grahshastra (home economics)". The minimum deposit at any one time will be raw gold (bars, coins, jewellery excluding stones and other metals) that is equivalent to 30 grams of gold of 995 fineness. The bonds will be sold through banks and designated post offices. He said if "we try in a correct direction we can remove" this tag of being a poor nation. The tradition of buying gold means it is India’s second-biggest expense on the import bill after oil, as the country consumes nearly 1,000 tonnes of the precious yellow metal every year.75 per cent per annum payable semi-annually on the initial value of the investment. He said that from now on, gold will not only be an instrument of security but also give earnings and will become a part of nation building.Put gold to productive use, says PMPrime Minister Narendra Modi on Thursday launched the gold monetisation and sovereign gold bond schemes to wean Indians away from the allure of physical gold towards financial instruments for investment and saving...Mr Modi also unveiled the first-ever Indian gold coin and bullion, with the Ashoka Chakra national emblem on one side and Mahatma Gandhi’s image engraved on the other.

There will be provision for premature withdrawal subject to a minimum lock-in period and penalty to be determined by individual banks. The gold deposited under MLTGD will be auctioned by MMTC or any other agency chosen by the Centre and sale proceeds credited to the Central government’s account at the Reserve Bank of India. The deposit certificates will be issued by banks in equivalence of 995 fineness of gold. There is no maximum limit for deposits under the scheme. The finance minister said the import of gold would come down with the launch of the three gold-related schemes on Thursday. He said the gold available in India should be put to productive use, and these schemes could show the way.The applications for Sovereign Gold Bond Scheme will be accepted from November 5, 2015 to November 20, 2015.Prime Minister Narendra Modi said India had no reason to be described as a poor country as it had 20,000 tonnes of gold.

"And we are such a poor country which has 20,000 tonnes of gold.. This is why there is no reason for India to remain poor," said Mr Modi. Investors will be compensated at a fixed rate of 2. The principal and interest of the deposit under the scheme will be denominated in gold. Perhaps the reason of our being poor is that 20,000 tonnes of gold is sitting idle. The designated banks will accept gold deposits under short term (1-3 years) bank deposits (STBD) as well as medium (5-7 years) and long (12-15 years) term government deposit schemes.The Gold Monetisation Scheme (GMS) will replace the existing Gold Deposit Scheme 1999. However, the deposits outstanding under the gold deposit scheme will be allowed to run till their maturity unless the depositors prematurely withdraw them.Resident Indians can make gold deposits under GMS. The bonds will be issued on November 26, 2015. The redemption price of the bond will be in Indian rupees based on the previous week’s (Monday-Friday) simple average of the closing price of gold of 999 purity published by IBJA.