Maiden gold bonds scheme ending today may garner Rs 150 crore, say bankers

Mumbai: Bankers expressed hope that the maiden gold bond scheme, launched by Prime Minister Narendra Modi earlier this month aimed at physical buying of the shiny metal, that closes today is likely to gross around Rs 150 crore.  “The scheme has already grossed up Rs 145 crore as of yesterday and we expect the scheme to end with Rs 150 crore by today end,” a senior public sector banker said. The banker also said that the numbers look reasonably good considering that this is the limited period offer and that a maiden one. The gold bonds scheme, which opened on November 5, will close today, as per government notification. On the other hand, it has been reported that the monetisation has failed with only around 400 gm being deposited so far. It could be recalled that on November 5, Modi had launched two gold schemes - a mega gold monetisation scheme aimed at getting a large chunk of idling 20,000 tonnes of gold jewellery with households and temples worth Rs 52 trillion into bank vaults; and a gold bond scheme that offers 2.75 percent interest to buyers, to curb its imports that have made the country the largest buyer of gold in the world. The country imports a staggering 1,000 tonnes of gold every year, draining out foreign exchange and putting pressure on the fiscal deficit. Modi had unveiled the maiden gold coin and bullion, bearing national emblem Ashok Chakra on one side and Mahatma Gandhi’s image engraved on the other side. The Sovereign Gold Bonds Scheme offers 2.75 percent annual interest rate. Buyers will have to disclose their permanent account number and other KYC documents. Initially, the coins will be available in denominations of 5 and 10 grams. A 20 gram bullion will also be available through 125 MMTC outlets. Under the gold monetisation scheme, banks will collect gold for up to 15 years to auction them off or lend to jewellers from time to time. Depositors will earn up to 2.50 percent interest per annum, a rate lower than bank deposits. With regard to the sovereign gold bonds, capital gains tax treatment would be the same as for physical gold for an individual investor. The RBI had fixed the gold bonds issue price at Rs 2,684 per gram, which is aimed at providing an alternative to buying physical gold, and also fixed an interest rate of 2.75 per cent and a choice to buy bonds worth 2 grams of gold, up to a maximum of 500 grams. PTI