Lok Sabha Question No. 6667 (UNSTARRED), answered on 2018-04-06
Subject: Gold Monetisation Scheme
Ministry: FINANCE
Asked by: HEMANT TUKARAM GODSE

## GOVERNITIENT OF INDIA MINISTR.Y OF FINANCE DEPARTMENT OF ECONOMTC AFFAIRS

## LOK SABHA

UNSTARRED  QUESTIoN No. 6667

TO BE ANSWERED ON: Friday, April 6, 2018/Chaitra  16, 1940 (Saka)

## GOLD MONETISATIOI{ SCHEME

## quEsTroN

## 6667. by SHRI GODSE HEMANT TUKARAM:

Will the Minister  of FINANCE  be pleased  to state:

- (a) whether India has surpassed  China as the world's largest  gold consumer  resulting in outflow of Forex reserves,  if so, the details  thereof and the reasons therefor;
- (b) whether the covernment has recently launched a Gold Monetlzation  Scheme  (GMS) 201S/Sovereign  Gold Bond (SGB) Scheme and a National Gold Coin under gold monetization  programme  to reduce reliance  on gold imports by encouraging households to monetize  thelr  gold, if so, the details thereof;
- (c) whether the Government  has received any representations  against this scheme and proposes  to make changes  in the GMS/SGB  including increasing the interest rate on Gold Bonds, if so, the details  thereof along with the action taken thereon;
- (d) whether the Government  has taken any steps to protect depositors  from tax department guestioning  the source of gold for this scheme, if so, the details thereof and the remedial action taken thereon; and
- (e) the extent to which the GMS is likely to improve  Gross Domestic Product (GDP) and curb inflation  and the steps taken by the Government  to popularize  this scheme?

## ANSWER MINISTER OF STATE II{ THE MINISTRY OF FINANCE (Shri P. Radhakrishnan)

- (a) No, Madam. As per World Gold Council's yearly  data for 2OL7, China is the largest consumer  of Gold and India is the second largest consumer  of Gold.
- (b) Yes, Madam, Government  of India has launched Gold Monetisation  Scheme (GMS) 2015, Sovereign Gold Bond (SGB) Scheme and Indian Gold Coin (IGC) on 5h November, 2015. The detailed guidelines of the Gold Monetisation Scheme  are available vide RBI's Master Direction No. DBR.IBD.No.45l23.67.003/2015-16  dated October 22, 2OL5, which is available on RBI'S website. The detailed  guidelines of the Sovereign Gold Bond Scheme are available vide Government of Indiat Gazette Notification F.No. 4(25)-W&M/2017  dated

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- 6 October, 2OL7 . The Indian Gold Coin is the country's first national gold coin of 24 carat purity  with 999 fitness  which is minted  indigenously. It has the Ashok  Chakra  engraved  on one side and face of Mahatma Gandhi ji on the other.
- (c) The Government receives representations  from various organizations  and individuals with suggestions to improve  the schemes. These are taken note and necessary changes made from time to time based on the review of the schemes.
- (d) The Gold Monetisation scheme does not provide  tax amnesty, As per the guidelines Issued by the Government on Gold Monetization  Scheme which are available on the website of Ministry of Finance, tax exemptions,  same as those available under the earller Gold Deposit scheme (GDS), would be made available to the customers, as applicable.
- (e) The objective of the Gold Monetisation scheme is to mobilize the gold held by households  and institutions in the country to put  this gold into productive use and in the long run to reduce the current account deficit by reducing the country,s reliance on the imports of gold  to meet the domestic  demand.