India gold monetization schemes
India's largest corporate alchemists MMTC-Pamp (Pamp minerals and metals trading company) believes that gold should be considered as a currency. The organization aims at providing a gold account program to help small-scale gold consumer retail store and melted gold and earn interest.
In order to reduce the national gold supply shortage situation, India witnessed a serious balance of payments current account deficit (abbreviated CAD) and gold imports too high. Therefore, the organization raised gold monetization program (referred to as GMS).
The program ensures that gold store with money saved in the bank, as you can earn interest.
MMTC-Pamp's general manager, Rajesh Khosla in Mumbai explains the plan: The plan will be gold as currency.
Khosla said the program also can be seen as a solution: How to 20,000 tons of idle people in India in the gold lead out.
Khosla said, and has a savings deposit account, you can have a metal savings account, the account exists in the form of fixed deposits, the bank will offer different interest rates. Because of the interest earned on gold is tax-free, so this is one of its major advantages.
Under the GMS program, consumers want to save a minimum of 40 grams of gold in the bank, and deposits as the same. After the expiry of the deposit, the depositor can get back the principal and get some extra interest.
For banks, GMS proved to be a win-win solution, gold can be used as part of the bank statutory reserves, but also in line with the provisions of the Indian central bank.
