NEW GOLD

SCHEME IN INDIA

BY-CIMPIANS
PRIYA
ARUNIMA
NAINA

PRIYA
SRIVASTAVA

NAINA

ARUNIMA

Collage-CIMP

Collage-CIMP

Collage-CIMP

Specialization-finance

Specialization-marketing

Specialization-finance

Gold deposit scheme

The scheme has two-pronged benefits.
First, it will reduce the dependence on imported gold
The gold deposit scheme can attract deposits:-As gold will
be converted into cash in the form of interest. Gold owners
can then use it for spending and banks for productive
lending.
It can also contribute to country Gross Domestic Product .

Sovereign Gold Bond Scheme

It will remove the need to import gold for
investment purposes: When people buy gold as an
investment, it has to be imported from
outside.
This leads to an outflow of forex and
increases Indias current account deficit
the amount India owes to the world in
foreign currency.
With the introduction of the bond, the
entire transaction will take place in
cash, removing the need for buying
imported gold

Indian Gold Coin

It could reduce the need for importing
gold coins.
Gold coins would also promote the
concept of 'Make In India' globally.

The Three Scheme Are Connected With Each

Other In The Following Ways: Converting the countrys gold holdings into cash to spur
spending and investment, and limit the need to import gold
To utilize the idle gold reserves and simultaneously give a return
to gold owners
It is a great tool for women empowerment as women would be
the biggest beneficiaries from this schemes
In order to ensure wide availability the bond will need to be
marketed through post offices and by various brokers/agents
who may need to be paid a commission (like for Kisan Vikas
Patra).

Impact of Gold Monetisation scheme

Generate employment- advantage of gold
refining over importing nished gold is that
the value addition gets done within the
country thereby generating employment

Save foreign exchange

Generate tax revenues - and generating tax
revenues for the government as direct taxes
are paid on income from rening.

IMPACT OF SCM
Convenience of Investing The government needs to work out a method to
allow convenient systematic monthly investments in gold which is one of the
most popular ways for retail investors to take investments in physical gold
Safety Since this is a Sovereign bond the only real risk is the risk of price
of gold going down, which anyways the investor in physical gold takes. If at
all, the risk is lower in this instrument than it is in physical gold because of the
assured return.
Returns The real danger currently seems to be that the returns might be too
attractive. The fear is that retail investors will buy their quota of SGB and sell
it off to the aggregators, who could make a killing.
Liquidity This is an important criterion as physical gold has excellent
liquidity and the government must ensure that the popular market makers offer
spot/online liquidity options even if it is at a discounted price and that there is
active trading in the markets for the SGBs.

Indian gold coin

STATEGY
Business Mission-To mobilize the idle gold in
the country and put it into productive use. To
provide the customers an opportunity to earn
interest income on their idle gold holdings

Strength:-

Weakness:-

The minimum tenure of the deposit can

be 1 year
The depositor on redemption date can
either take cash or pure gold.
The minimum deposit is30 grams, so
that even small depositors are
encouraged

Gold bonds is lack of liquidity.

It is only open to Indian residents

Opportunity:22,000 tones of gold, worth more than

$1 trillion is currently held in Indian
households
if a small portion of this gold were
monetized, its economic impact would
be significant.

Threat:It would be very challenging to

make individuals switch from
buying physical gold to a paper
which promises gold like returns.
The emotional bonding associated
with gold investments can also be a
hindrance.

Threat:It would be very

challenging to make
individuals switch
from buying physical
gold to a paper which
promises gold like
returns. The
emotional bonding
associated with gold
investments can also
be a hindrance

Weakness:Gold bonds is lack

of liquidity.
It is only open to
Indian residents

Opportunity:22,000 tones of gold,

worth more than $1
trillion is currently
held in Indian
households
if a small portion of
this gold were
monetized, its
economic impact
would be significant.

Strength:The minimum tenure

of the deposit can be
1 year
The depositor on
redemption date can
either take cash or
pure gold.
The minimum deposit
is30 grams, so that
even small depositors
are encouraged

Goal FormationStrategy Formation

Program Formation
Implementation
Feedback and control