Gold is a precious metal that represents prosperity and has cultural significance in Indian households. This is why many choose to invest in gold. Moreover, it can be used to get a gold loan to cover immediate cash requirements.
With most banks, NBFCs and other financial institutions providing attractive gold loan interest rates, it is easy to leverage this asset. While you can look out for various forms of gold investment such as jewellery, bars or biscuits, investing in gold schemes is also a preferred choice.
This is because owning gold in its physical form can be a constraint for many due to its high cost and need for secure storage. To ease the hassles, the government of India unveiled 3 gold schemes for investors.
Read on to know more about these gold schemes and the essential guidelines associated with these schemes, as directed by the Reserve Bank of India.
The Indian gold coin is a part of the Gold Monetisation Programme The coin is the first ever national gold coin minted in India and has the National Emblem of Ashok Chakra engraved on one side and Mahatma Gandhi on the other side. The coins are available in denominations of 5, 10 and 20 grams.
B. When and why was the Scheme Implemented?
The scheme was launched in November 2015 to minimise the import of foreign minted gold coins or bullion. The Indian Gold coin & bullion is unique in many aspects and carries advanced anti-counterfeit features and tamper proof packaging, offering additional benefits to customers.
C. Key Features of the Scheme
The Indian Gold coin & bullion is of 24 carat purity and all coins & bullion are hallmarked as per the BIS standards. Buyers are to disclose their PAN number and submit the required KYC documentation when purchasing IGC.
SPMCIL (Security Printing and Minting Corporation of India) will also mint and sell IGC through an online e-commerce platform, and via multiple channels including Airports. IGC is available in both 999 and 995 purity forms. These coins are minted in smaller denominations.
Banks are allowed to sell IGC based on the agreement between the respective bank and MMTC. Buyers are to disclose their PAN number and submit the required KYC documentation when purchasing IGC.
These are made from 24-karat gold with 999 purity and all coins have been hallmarked by BIS or the Bureau of Indian Standards. Furthermore, the price of these coins is to be determined by the Metals and Minerals Trading Corporation of India (MMTC).
The price of Indian Gold Coins fluctuates depending on the gold rate in the international market and customers can easily monetise these coins as these are backed by MMTC.
The minimum lock-in period for this scheme, as per the Reserve Bank of India, is between 3 years and 5 years, based on your chosen deposit term.
For the Sovereign Gold Bond (SGB) scheme, the minimum investment limit for gold as an investor is 1 gram. The maximum investment limit of gold as an investor is 4 kg.
Indian gold coins under the Indian Gold Coin Scheme are available in various denominations such as 5 grams, 10 grams and 20 grams.
Yes. As these coins are hallmarked by the Bureau of Indian Standards and backed by MMTC (Metals & Minerals Trading Corporation), you can easily sell them in the market.