<p>Yes Bank has launched the Gold Sovereign Bond soon after Prime Minister Naredra Modi launched three gold schemes on Thursday (05 November).<br><br>Rana Kapoor, MD & CEO, Yes Bank said, “I applaud this much needed, far-sighted initiative that is timed very well to coincide with the Gold buying festive season of Dhanteras and Diwali. The Gold Schemes will have important ramifications for the economy. The consumer will benefit from market expansion as financial substitutes for physical gold would be made available with simplified access. At a macro level, it will unlock savings in unproductive physical assets and thereby help channelize financial savings towards more productive investments. It will also develop expertise in local hallmarking which would drive demand for Made in India Gold both locally and internationally.”<br><br>Through its Yes Institute had floated multiple concept and implementation papers on the Gold Monetization Schemes to build an industry level consensus thereby augment the government’s stellar efforts<br><br>While the Gold Schemes operationalized by the Government are indeed innovative structural policy initiatives, the following recommendations will help in fine tuning the scheme, while also improvising on certain aspects:<br><br>1. Create More CPTCs (Collection & Purity Testing Centres): The Western and Southern states of India have the highest concentration of household gold & gold buying propensity. Hence, while the initial CPTCs are concentrated in these states, in due course of time, the balance six states and UTs which currently don’t have a certified hall marking center may also be covered, which will make it convenient for depositors to transact with banks.<br><br>2. Tweak Disclosure Patterns: The Government could introduce a suitable slab-based disclosure basis the amount deposited, keeping in mind the sensitivities involved. For high net worth religious trusts, the Government could make participation mandatory without declaration of sources of procurement.<br><br>3. The Government could also suitable suitably communicate the applicability and implications of various regulatory commercial levies (i.e. treatment of excise duty/ VAT/ Custom duty etc.) to all stakeholders; this will ensure seamless implementation of GMS by participating players.<br><br>"The Gold Monetization Scheme is a breakthrough step towards financialization of gold and will also significantly strengthen our economy and help easing pressure on CAD. The Gold Monetization Scheme (GMS) aims to tap household gold stocks of around 22,000 tonnes, while the Sovereign Bond Scheme will help shift part of the estimated 300 tonnes of physical gold bars and coins purchased every year in the country for investment into Demat Gold Bonds.” Kapoor added.<br><br>(BW Online Bureau)</p>
