The Gold Monetisation Scheme - Simplified in an Infographic
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This document discusses India's gold monetization scheme launched by the Reserve Bank of India. It aims to curb gold imports and reduce the current account deficit by enabling households and jewelers to deposit gold holdings in banks. Depositors can earn interest on gold deposits and take loans if needed. The scheme also intends to circulate India's estimated 20,000 tons of domestic gold by pulling it out of homes and lending it out. The document provides background on India being the second largest gold buyer globally and the rise and fall of gold prices in recent years. It outlines some advantages and disadvantages of the gold monetization scheme.
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The Gold Monetisation Scheme - Simplified in an Infographic
- 1. 138.3 8.2 5.6 7.2 8.5 8.3 4.5 4.5 6.1 6 6.3 4.5 5.5 5.9 124.8 136.1 153 159.5 188 114.5 150.7 123.5 152.6 183.3 144.7 150.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 2011 26,400 31,799 26,481 26,710 26,820 2012 2013 2014 2015 Indiaisthesecondlargestbuyerofgoldacross theglobe.Withconstantupsanddownsinthe globaleconomy,goldpriceshaveseenthe biggestfallsince2011. TheRiseandFallofGold GoldDemandforJewelleryPicksUp Goldisconsidered anequivalentto liquidcash Goldisconsidered asastatussymbol Goldisavery goodinvestment Goldhasgreat religious significance Goldhasgreat ornamentalvalue Goldhasgreatvalue asheirloom Conclusion WhatistheGoldMonetisationScheme? TheGoldMonetisationSchemelaunchedbytheRBIisanotherattempttocurbtheimport demandsfromthecountryandthuscutthecurrentaccountdeficitsforIndia,asgoldimports constituteasignificantchunk.Findouttheriseandfallofgold,andtheadvantagesand disadvantagesoftheGoldMonetisationSchemebelow: TheGoldMonetisationScheme,proposedinthisyear’sbudget,wouldenabledepositors,suchas householdsandjewellerstoopenmetaldepositswithbanks,placetheirgoldholdingsinthem, earninterestsonthegolddepositsandifneeded,borrowmoneyfromit. Theschemealsointendstocirculatethestashedunproductivegoldintheeconomy,estimatedat around20,000tons,bypullingitoutofdomesticsafesandlendingitout. Introduction Goldimportshavegrowninrecentmonths Yearlygoldimports 1.8 20.7 FY09 FY10 FY11 FY12 FY13 FY14 FY15 28.8 40.7 56.5 53.8 28.7 34.4 2.2 3.1 1.8 2 3.8 4.2 9.8 1.3 1.6 2 5 3.1 APR MAY JUN JUL 2014 2015 AUG SEP OCT NOV DEC JAN FEB MAR APR Advantages Disadvantages ItwillbeinterestingtowatchoutforneweroffersbytheGovernmenttobringmoregoldintotheeconomy. ThefinancialworldnowsimplifiedwithKarvyPrivateWealth.Staytunedformoreupdates!