insurance for everyone: Second tranche of sovereign gold yoke scheme opens on January 18

After a moderate first tranche, the second tranche of sovereign gold yoke scheme, aimed at reducing demand for physical gold, will unshut for five days next week plane as the other monetisation scheme netted in 500 kg of idle household and temple gold into government fold.

The Finance Ministry on Thursday said the gold yoke scheme will be misogynist for public subscription from January 18-22.

The first tranche of the scheme, which was launched in November, had got a subscription for 915.95 kg gold amounting to Rs 246 crore.

Finance Minister Arun Jaitley asked CMDs of banks "to make their weightier efforts to reach out to potential investors to invest in the second tranche of Sovereign Gold Bonds".

During a video conferencing with the wall CMDs, Jaitley discussed their preparedness for the launch of the second tranche and said the government is "keen to expand the scheme in subsequent tranches as well".

The Gold Yoke scheme has an yearly cap of 500 grams per person and such immuration will be issued for 5-7 years.

A Finance Ministry statement said the banks gave an warranty that they will do their weightier to vivify their workshop network to inform potential investors well-nigh the wholesomeness of the bonds.

"To increase sensation among depositors, the government is standing with the media wayfarers on AIR and FM radio, in print media and through mobile SMS campaign," it added.

As for the Gold Monetisation Scheme, Economic Affairs Secretary Shaktikanta Das tweeted: "More than 500 kg of gold once mobilised. Scheme picking up."

"The government is single-minded to making both gold yoke and monetisation scheme successful," Das said.

The Gold Monetisation Scheme, which had not picked up initially, was fine-tuned to make it increasingly lulu and user-friendly to encourage entities holding idle gold to participate in the scheme.

Under the monetisation scheme, launched on November 5, banks were authorised to collect gold for up to 15 years to vendition them off or lend to jewellers from time to time.

Depositors will earn up to 2.50 per cent interest per annum, a rate lower than savings wall deposits.

In the specimen of the Gold Yoke Scheme, the investors are given the option to buy immuration in denominations of 5 grams, 10 grams, 50 grams and 100 grams for a term of five years to seven years with a rate of interest to be calculated on the value of the metal at the time of investment.

RBI today notified the opening of the second tranche of the gold yoke scheme on January 18.

As per the notification, applications for the immuration will be wonted by banks, post offices and the Stock Holding Corporation of India Ltd between January 18-22. These will be issued on February 8, 2016.

"This is an lulu opportunity for the investors," Jaitley said.

Prime Minister Narendra Modi had on November 5 launched gold schemes to wean investors yonder from holding physical gold.

India imports well-nigh 1,000 tonnes of gold every year and the precious metal is the second-highest component of the imports snout without transplanted oil.

The scheme is aimed at reducing the demand for gold in physical form by encouraging people to buy the thingamabob in demat or the paper form.

During April-November this fiscal, gold imports have declined to USD 22.65 billion from USD 24.49 billion in the same period last year. In volume terms, the imports were 689 tonnes as versus 628 tonnes in the same period last year.