Gold Monetisation and other related schemes to be launched on the eve of Diwali: PM Modi

New Delhi: On the eve of Diwali, the government will launch important gold-related schemes, including the Gold Monetisation, Prime Minister Narendra Modi announced Sunday, expressing confidence that it will give a new direction to the economic development.

Besides the Gold Monetisation Scheme, the government will also launch 'Sovereign Gold Bonds' and gold coins with Ashok Chakra, he said in his monthly radio programme 'Mann Ki Baat'.

"In the last Budget, we had announced an important scheme. In our country, gold has become a part of our social life. Gold is treated as a means of economic security, a help during the time of crisis. It is traditionally believed so.

"I don't think anybody can reduce the love of people for gold. But to keep gold in the form of dead money does not augur well in this age. Gold can become strength, an economic strength. Gold can become the country's economic property and every Indian should contribute to this," he said.

He said he was happy to announce that as per the promise made in the Budget, the government is going to launch "some important schemes" during this Diwali festival, prior to 'Dhanteras' when gold is purchased by people. Diwali is on November 11.

"We have brought Gold Monetisation Scheme. Under this, you can deposit your gold in a bank and bank will pay interest to you for that like on your cash," Modi said.

He noted that as per the traditional practice, people keep gold in lockers, for which they have to pay to banks. "Now, keep gold in the bank and bank will pay you in the form of interest. Now say, will gold not be an asset? Can gold not transform from dead money to live power? This is what we have to do. You support me," Modi said in his 35-minute programme.

Asking people not to keep gold at home, he said keeping it in banks will have two benefits -- security and interest. "You must take the benefit."

Talking about the Sovereign Gold Bonds scheme, he said people will not get any gold bar but a piece of paper which will have the same value as that of gold. "When you return that piece of paper, you will get money as per the value of gold at that time... We are going to initiate this," he said.

Speaking about its benefits, the Prime Minister said because of this, one would not not need to buy gold and worry about where to keep it.

It will be a matter of just a piece of paper which "nobody will come to steal", he said, adding this secure scheme will be launched in the coming weeks.

"I am also happy to announce that we will be bringing out

Gold Coins with Ashok Chakra. It has been 70 years since Independence, but till now we are using foreign gold coin or gold bullion bars which is also used by foreigners.

"Why can't we have swadeshi-mark coin? This is why in the coming weeks, before Dhanteras, these will be available," Modi said.

He said the government will start gold coins of 5 gms and 10 gms with Ashok Chakra. Along with this, 20 gms cold coin will also be available.

"I am confident that these new schemes will give new direction to the economic development of the country. I want your cooperation in this," the Prime Minister told the people.

The government is launching these schemes with a view to mobilise a part of 20,000 tonnes of idle gold lying with households and temples.

"Security printing and Minting Corporation of India Ltd will be minting these coins. 20,000 coins of 5 gm and 30,000 coins of 10 gm would be made available," the sources said.

They added that these coins would be cheaper than market rate and will be distributed through branches of banks and post offices.

India is a major consumer of gold. People buy the precious metal on different festivals, marriage and also for investment purpose.

The government had in September cleared the gold monetisation scheme aimed at tapping part of an estimated 20,000 tonnes of idle gold worth about Rs 5,40,000 crore into the banking system and also issuing sovereign bonds as an alternative to the precious metal.

Sovereign gold bonds will be offered in tranches and the interest would be payable in the rupee.

As regards the sovereign gold bond scheme, the government aims to raise Rs 15,000 crore and the timing of the launch will be decided in consultations with the Reserve Bank.