12.42         ndian     onom
           India is looking at investing US $1 trillion     gold (bullion or jewellery) which can be deposited
     in infrastructure development by 2017, half            is 30 grams and there is no limit for maximum
     of which is expected to come from the private          deposit.
     sector. The instructions announced by the RBI               Gold Saving Account can be opened with
     are in pursuance of the Union Budget 2015–16           any of the designated bank and denomination in
     announcement.                                          grams of gold for short-term period of 1–3 years,
                                                            a medium-term period of 5–7 years and a long-
        gold InvestMent scheMes                             term period of 12–15 years. The CPTCs transfer
                                                            the gold to the refiners. The banks will have a
     Two new gold investment schemes were launched
                                                            tripartite/bipartite legal agreement with refiners
     by the Government of India by November
                                                            and CPTCs.
     2015—the Sovereign Gold Bonds and Gold
     Monetisation Schemes. The schemes are aimed at              For the year 2015–16 interest rates was fixed
     twin objectives:                                       as 2.25 per cent and 2.5 per cent for the medium-
                                                            and long- term, respectively. Redemption is made
           (i) Reducing the demand for physical gold;
                                                            in cash/gold for short term and in cash for medium
                                                            and long term deposits.
          (ii) Shifting a part of the gold imported
                                                                 The difference between the current borrowing
               every year for investment purposes into
                                                            cost for the government and the interest rate paid
               financial savings.
                                                            by the government under the medium/long term
           Brief feature of the schemes are as given below: deposit will be credited to the Gold Reserve Fund.
     sovereign golD bonDs
                                                               Mudra Bank
     These are issued by RBI on behalf of the GoI
     in rupees and denominated in grams of gold             As per the Government of India, large industries
     and restricted for sale to the resident Indian         provide employment to only 1.25 crore people in
     entities only, both in demat and paper form. The       the country while the micro units employ around
     minimum and maximum investment limits are              12 crore people. There is a need to focus on these
     two grams and 500 grams of gold per person per         5.75 crore self-employed people (owners of the
     fiscal year, respectively. The rate of interest for    micro units) who use funds of Rs. 11 lakh crore,
     the year 2015–16 was 2.75 per cent per annum,          with an average per unit debt of merely Rs. 17,000.
     payable on a half yearly basis. The tenor of the       Capital is the key to the small entrepreneurs. These
     Bond is for a period of 8 years with exit option       entrepreneurs depend heavily on the local money
     from 5th year onwards. KYC norms are the same          lenders for their fund requirements.
     as that for gold. Exemption from capital gains tax          Looking at the importance of these enterprises,
     is also available. Redemption is made in the rupee     the Government of India launched (April 2015)
     value equivalent to the price of gold at the time      the Micro Units Development and Refinance Agency
     of maturity.                                           Bank (MUDRA Bank) with the aim of funding
                                                            these unfunded non-corporate enterprises. This was
     golD monetisAtion scheme                               launched as the PMMY (Prime Minister Mudra
     In this scheme, BIS (Bureau of Indian Standards)       Yojana). Important features of the MUDRA Bank
     certified CPTCs (Collection, Purity Testing            are as given below:
     Centres) collect the gold from the customer on                  Under this banking model, the micro
     behalf of the banks. The minimum quantity of                    units can avail up to Rs. 10 lakh loan