New Delhi: Government will next month launch two gold schemes - monetisation and sovereign bond - to rein in demand for physical gold and contain its import.
"There are two schemes -- Gold monetisation and Sovereign gold bond. We are working out the details. We have had our meetings with the Reserve Bank. Both the schemes will be launched in November," Economic Affairs Secretary Shaktikanta Das said.
Das further said that government will very soon issue gold coins with Ashok Chakra symbol, which will also help curb the demand of imported coins.
"Action has already been taken by MMTC and date will be shortly announced. Very soon it will be released," he said when asked about the timeline for the launch of gold coin.
The decision to issue Indian gold coins follows an announcement made by Finance Minister Arun Jaitley in his Budget speech.
To discourage gold imports, the Cabinet, headed by Prime Minister Narendra Modi, had in September approved both the schemes.
Through the Gold Monetisation Scheme, gold in any form can be deposited with banks for a period of 1-15 years that will earn interest while redemption will be at the prevailing value at the end of the tenure.
Sovereign gold bonds, on the other hand, are aimed at people buying the precious metal as an investment. Such bonds will be issued in denominations of 5 grams, 10 grams, 50 grams and 100 grams for 5-7 years with a rate of interest to be calculated on the value of the metal at the time of investment.
However, there will be a cap of 500 grams that a person can purchase in a year. Such bonds will be offered to only Indian citizens and institution while the securities will be traded on exchanges to allow early exit for investors.
The government expects to raise Rs 15,000 crore through the gold bonds in the current fiscal.
India imports about 1,000 tonnes of gold every year and that has an adverse impact on the current account deficit, which is the difference between the inflow and outflow of foreign currency.
Besides, 30 per cent of the gold imported is utilised towards household savings. Through the Gold Monetisation scheme, government expects that the country's reliance on import of gold to meet domestic demand would be reduced.
India's current account deficit widened to $6.2 billion, or 1.2 per cent of GDP, in April-June, from $1.3 billion, or 0.2 per cent of GDP, in the January-March quarter.
On account of festive demand, gold imports soared to over 120 tonnes in August, from 89 tonnes in July.
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