SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 06 Nov, 2015  

YES BANK Announces the Launch of Gold Sovereign Bond

NewsVoir | 05 Nov, 2015
The Gold Schemes launched by the Hon’ble Prime Minister Shri. Narendrabhai Modi are a ‘Golden Opportunity’ to monetize the country’s massive idle Gold Reserves, thereby strengthening the Economy, and reducing Gold Imports. India is one of the world’s largest consumers of gold; with a major proportion of savings in gold, it is vital to monetize this commodity through an interest earning investment instrument, which will result in increased liquidity in the economy.

YES BANK has launched the Gold Sovereign Bond from major branches across the country, and is in the process of fine tuning its launch of the Gold Monetization Scheme. YES BANK 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

Speaking on the sidelines of the launch of the Gold Schemes by Hon’ble Prime Minister Shri Narendra Modi, Mr. 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.”

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:

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.

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.

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.

Commenting further on the significance of the scheme, Mr. Rana Kapoor, MD & CEO, YES BANK said, 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.”


YES BANK, India’s fifth largest private sector Bank with a pan India presence across all 29 states and 7 Union Territories of India, headquartered in the Lower Parel Innovation District (LPID) of Mumbai, is the outcome of the professional & entrepreneurial commitment of its Founder Rana Kapoor and its top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India.

YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers.

YES BANK has a knowledge driven approach to banking, and offers a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals’ Bank of India with the long term mission of “Building the Finest Bank of the World in India” by 2020.

Print the Page Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter