What does GMS mean in UNCLASSIFIED
Gold Monetization Scheme (GMS) is a government-operated program launched by the Reserve Bank of India (RBI) in 2015. The scheme aims to mobilize dormant gold in the country and channel it into productive uses, particularly in the jewelry sector.
GMS meaning in Unclassified in Miscellaneous
GMS mostly used in an acronym Unclassified in Category Miscellaneous that means Gold Monetization Scheme
Shorthand: GMS,
Full Form: Gold Monetization Scheme
For more information of "Gold Monetization Scheme", see the section below.
Objectives of GMS
- Monetize Gold: Encourage individuals to convert their physical gold into liquid assets through banks and authorized agencies.
- Reduce Gold Imports: By increasing the supply of gold within the country, GMS aims to reduce India's dependence on gold imports, which contribute to the country's trade deficit.
- Promote Gold Jewelry Manufacturing: The gold mobilized under the scheme is primarily used in the manufacture of gold jewelry, boosting domestic production and job creation.
- Facilitate Financial Transactions: GMS enables individuals to use their gold as collateral for loans, facilitating access to credit.
How GMS Works
- Gold Deposits: Individuals can deposit their physical gold at authorized banks or agencies participating in the scheme.
- Gold Certificates: In exchange for the deposited gold, depositors receive Gold Deposit Certificates (GDCs).
- Interest Earning: GDCs earn interest at a specified rate, providing a return on the deposited gold.
- Redemption: Depositors can redeem their GDCs at any time and receive the equivalent value in gold or cash.
Benefits of GMS
- Earning Interest: Individuals can earn interest on their deposited gold without having to sell it.
- Collateral for Loans: GDCs can be used as collateral for loans, providing access to credit without having to sell the physical gold.
- Reduction in Gold Imports: By mobilizing dormant gold, GMS helps reduce India's dependence on gold imports.
- Support for Gold Jewelry Sector: The scheme boosts domestic gold jewelry manufacturing, creating employment opportunities.
Essential Questions and Answers on Gold Monetization Scheme in "MISCELLANEOUS»UNFILED"
What is the Gold Monetization Scheme (GMS)?
GMS is a government-run scheme that allows individuals and institutions to deposit their gold with banks and earn interest on it. This program aims to mobilize idle gold within the country and reduce India's reliance on gold imports.
Who is eligible to deposit gold under GMS?
Indian citizens, Hindu Undivided Families (HUFs), trusts, and other legal entities are eligible to participate in the GMS.
What forms of gold can be deposited under GMS?
Gold in the form of bars, coins, jewelry, and ornaments (with a purity of at least 99.5%) can be deposited under GMS.
How can gold be deposited under GMS?
Gold can be deposited at designated banks that participate in the scheme. The deposited gold is melted down and cast into standard gold bars before being stored in vaults.
What is the minimum quantity of gold required for deposit under GMS?
The minimum quantity of gold required for deposit under GMS is 30 grams.
What is the interest rate offered under GMS?
The interest rate offered under GMS is determined by the government and varies based on the tenure of the deposit.
What is the tenure of deposits under GMS?
Gold can be deposited under GMS for a minimum tenure of 1 year and a maximum tenure of 15 years.
Is there a penalty for premature withdrawal under GMS?
Yes, a penalty of 0.5% per month is applicable if gold is withdrawn before the maturity date.
Can gold deposited under GMS be used as collateral for loans?
Yes, gold deposited under GMS can be used as collateral for loans from participating banks.
Final Words: The Gold Monetization Scheme is a significant initiative aimed at mobilizing idle gold in India and harnessing its economic potential. By incentivizing individuals to deposit their gold and making it available for productive uses, GMS contributes to reducing gold imports, promoting domestic gold jewelry manufacturing, and facilitating financial transactions.
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