Lok Sabha Question No. 1150 (UNSTARRED), answered on 2015-12-04
Subject: Gold Monetisation Scheme
Ministry: FINANCE
Asked by: HEENA VIJAYKUMAR GAVIT, FAIZAL P.P. MOHAMMED, K. MARAGATHAM, SHASHI THAROOR, SURESH KODIKUNNIL, C.R. CHAUDHARY, SANGANNA AMARAPPA KARADI

i

- (a)

## GOVERNMENT  OF INDIA MINISTRY OT I'INANCE DEPARTMENT  OF ECONOMIC AFFAIRS

LOK SABHA

UNSTARRED  QIIESTION  No. li50

TO BE ANSWERED ON: F'riday, 4th December,  20l5/Agrahayana  13, 1937 (Saka)

Gold Monetisation  Scheme

## OUESTION

1150. DR. HEENA VIJAYKUMAR GAVIT: MOHAMMED  FAIZAL: SHRIMATI K. MARAGATHAM: DR. SHASHI THAROOR: SHRI KODIKUNNL  SURESH: SHRI C.R. CHAUDHARY: SHRI SANGAIINA  AMARAPPA:

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 ofForex reserves,  if so, the details thereof and the reasons therefor;
- (b) whether the Govemment has recently launched a Gold Monetization Scheme (GMS), 20l5/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 their gold, if so, the details thereof;
- c) whether the Government has received  any representations  against  this scheme  and proposes  to make changes in the GDS/SGB  including increasing the interest  rate on Gold Bonds, if so, the details thereof a.long  with the action taken thereon;
- (d) whether the Govemment has taken any steps to protect depositors  from tax department questioning the source of gold for this scheme, if so, the details thereof and the remedial action taken thereon;  and
- e) the extent  to which of the Gold Monetization Scheme is likely to improve GDP and curb inflation  and the steps  taken by the Govemment to popularize  this scheme?

## ANSWER MINISTER Of,'STATE IN THE MINISTRY OF XINANCE

## (sHRr JAYANT SrNHA)

- According to (Gold Fields Minerals Survey) GFMS Gold Survey in the third quarter  of 2015 Review and Outlook  Report, published  by Thompson  Reuters, India has surpassed China as the world's largest gold consumer.  According to the report, the consumption of gold in the first nine months of the year 2015 in India has been 642 tonnes whereas that in China has been 579 tonnes. A fall in the prices  of gold  in the recent months has been one of the reasons for the increased demand for gold in India.
- (b) Yes, Sir. The Gold Monetization  Scheme (GMS), the Sovereign  Gold Bond (SGB) scheme  and Indian Gold Coin were announced in Union Budget 2015-16 and were accordingly launched  on 5ft November,  2015. The detailed guidelines of the Gold Monetization Scheme  are available  vide RBI's Master Direction No. DBR.IBD.No.45 n3.67.003 / 2015-16 dated October  22,20ls,which  is available  on RBI's website.  The detailed  guidelines  of the Sovereign Gold Bond Scheme is available  vide Govemment  of India's Gazette Notification F.No. 4(19)W&1W2014  dated October 30,2015.  The Indian Gold Coin is the country's first national  gold coin of24 karat purity with 999 fineness which is minted indigenously.  It has the Ashok  Chakra engraved on one side and the face of Mahatma  Gandhi  on the other.
- (c) The Govemment receives representations from various organizations  and individuals with suggestions  to improve the existing schemes. These are taken note ofand necessary  changes made from time to time based on the review of the schemes.
- (d) The Gold Monetization  Scheme does not provide tax amnesty. As per the guidelines issued by the Govemment  on Gold Monetization Scheme  which are available on the website  of the Ministry of Filance, tax exemptions,  same :rs those available  under the earlier Gold Deposit Scheme  (GDS), would  be made available  to the customers, as applicable.
- (e) The objective of the Gold Monetization Scheme is to mobilize  the gold held by households and institutions in the country to put this gold into productive  use and in the longrun, to reduce  the current  account  deficit by reducing the country's reliance  on the imports of gold to meet the domestic  demand.

a