PM Modi's gold deposit scheme attracts only 400 grams so far

[大汉奸柳传志]

Live India
A gold deposit scheme launched amid fanfare by Prime Minister Narendra Modi two weeks ago has so far attracted only 400 grams, out of a national hoard estimated at 20,000 tonnes, an industry official said.

PM Modi has urged Indians to put gold stashed in homes and temples in the bank, offering modest rates of interest that earlier schemes have lacked. The government has also launched ‘paper’ gold in the form of gold-backed bonds.

A storage of centres to assay the gold being put on deposit is a problem that the government has agreed to address said Anil Sankhwal, the northern regional chairman of the Gem and Jewellery Export Promotion Council.

“Only 400 grams have been deposited so far,” Sankhwal said. “The government has agreed to review the scheme and open more centres for gold testing and depositing in banks.

A finance ministry official said the government had agreed to increase the number of testing centres and refineries involved in the scheme. There are 29 testing centres and four refineries currently accredited to it.
The number of testing centres would increase to 55, and refineries to 20, by the end of the year.

- See more at: PM Modi's gold deposit scheme attracts only 400 grams so far | Live India

 

[大汉奸柳传志]

I remembered when the policy was announced，thought it was a brilliant idea

Why doesnt it work

 

[kalibr]

It will work, it need awareness, I as a banker not much aware of it.
Its gold, people saving, it will take time.
Presstitute should have some patience

 

[Abotani]

Indians and their gold aren't parted easily. The Modi fans may harp his laurels but few will support him if it means losing money,personally.

 

[mpk1988]

Like other posters have mentioned.. Indians and gold.. It's really tough to separate them. This will take years, if not a decade to be fruitful.

 

[deckingraj]

Indians and their gold aren't parted easily. The Modi fans may harp his laurels but few will support him if it means losing money,personally.

How is this scheme equivalent of loosing money? The only reason i will not go for it as a person would be

a) I am still not much aware of how it works
b) I don't wanna loose my gold ornaments which are meant for passing on to next generations.

Anyways i believe this scheme is actually looking at all those trusts(temples) that are sitting on piles of gold...It is similar to another scheme of govt. i.e. NPS similr to 401K of US....apart from govt. employees who are forced to join this scheme not many takers for NPS

 

[Bombermanx1]

Relax,This scheme was launched on Diwali recently,which is not even a months time.The message will take time to seep in and eventually people will find out about it and invest in gold deposit schemes.Most are not aware of how it works once the banks explain them the details they will invest in gold bonds.

 

[ito]

Indian households have so much gold with them that the collective value of the gold must be in 10 of trillions of dollars worth

 

[Abotani]

How is this scheme equivalent of loosing money? The only reason i will not go for it as a person would be

a) I am still not much aware of how it works
b) I don't wanna loose my gold ornaments which are meant for passing on to next generations.

Anyways i believe this scheme is actually looking at all those trusts(temples) that are sitting on piles of gold...It is similar to another scheme of govt. i.e. NPS similr to 401K of US....apart from govt. employees who are forced to join this scheme not many takers for NPS

a) The scheme was very well advertised and announced. Even people here in the remotest parts of NE heard of it.
b) Duh, that's what I am saying. People may rabidly support Modi and BJP, but they will not do anything which means taking a significant financial hit. Gold is seen as an asset, by all Indians, that always increases in value and gives magnificient returns as well. The Gov schemes means losing your gold nest in return for riskier and lower returns, in the psyche of Indian people.

The point about gold ornaments being heirlooms has been diluted a lot and holds true mostly for ornaments that have already been in possession for a couple of generations at least. Most Indians nowadays, see gold ornaments as more of an investment than a heirloom.. whereas earlier it was equally both.

 

[TejasMk3]

It will work, it need awareness, I as a banker not much aware of it.
Its gold, people saving, it will take time.
Presstitute should have some patience

Exactly

Remember when they were crying about "useless bank accounts".
More than 50% Jan Dhan Yojana bank accounts remain empty - Livemint

Jan Dhan Yojana 5.37 crore bank a/cs deposits grow from Rs 4.27 lakh to Rs 27,000 crore in a year - timesofindia-economictimes

Since its launch in September last year, the share of non-operative or zero balance accounts has slid to 36 per cent from 77 per cent earlier. About 19 crore accounts have been opened with about Rs 27,000 crore balance; it was a meagre Rs 4.27 lakh in 5.37 crore bank accounts more than a year ago, show government data.

Should give it more time to see how it works out.

 

[ito]

a) The scheme was very well advertised and announced. Even people here in the remotest parts of NE heard of it.
b) Duh, that's what I am saying. People may rabidly support Modi and BJP, but they will not do anything which means taking a significant financial hit. Gold is seen as an asset, by all Indians, that always increases in value and gives magnificient returns as well. The Gov schemes means losing your gold nest in return for riskier and lower returns, in the psyche of Indian people.

The point about gold ornaments being heirlooms has been diluted a lot and holds true mostly for ornaments that have already been in possession for a couple of generations at least. Most Indians nowadays, see gold ornaments as more of an investment than a heirloom.. whereas earlier it was equally both.

Can you explain how holding gold is great investment strategy, but putting the gold in government scheme is not? Anyone with a little knowledge of investments can say that the second strategy will give you more returns.

The truth is majority of Indians don't see gold as an investment. If they were, this scheme would have been a great success. For Ex: My mom has gold ornaments that can be traced back to at least 4 generation. No matter what my Mom will never part with her gold. Gold for Indians has emotional attachment and holding gold has cultural reasons.

 

[Abotani]

Can you explain how holding gold is great investment strategy, but putting the gold in government scheme is not? Anyone with a little knowledge of investments can say that the second strategy will give you more returns.

The truth is majority of Indians don't see gold as an investment. If they were, this scheme would have been a great success. For Ex: My mom has gold ornaments that can be traced back to at least 4 generation. No matter what my Mom will never part with her gold. Gold for Indians has emotional attachment and holding gold has cultural reasons.

what else did I say?

 

[ito]

what else did I say?

Read again what you wrote...you started by saying Gold is an investment, I said it is not...both have opposite positions.

 

[Abotani]

Read again what you wrote...you started by saying Gold is an investment, I said it is not...both have opposite positions.

Sigh, now why do people have attachment towards certain objects and not towards some others. For eg, your mum, with all due repect, has 'emotional attachment, towards her hereditary jewelry than some other object that her family may have used.Say for example the classic Indian 'Lota'. I am sure her family must have used such 'Lotas' for generations as well. Why did her family never pass it down as heirlooms?

To cut it short, jewelry - rather the gold - has value, and will retain it's value against inflation and is a safe nest. That's why. While fiat money?

People get 'attached' to things that have value and have invested their money on. That is why they are reluctant to let go of it for lower gains.

 

[deckingraj]

a) The scheme was very well advertised and announced. Even people here in the remotest parts of NE heard of it.
b) Duh, that's what I am saying. People may rabidly support Modi and BJP, but they will not do anything which means taking a significant financial hit. Gold is seen as an asset, by all Indians, that always increases in value and gives magnificient returns as well. The Gov schemes means losing your gold nest in return for riskier and lower returns, in the psyche of Indian people.

The point about gold ornaments being heirlooms has been diluted a lot and holds true mostly for ornaments that have already been in possession for a couple of generations at least. Most Indians nowadays, see gold ornaments as more of an investment than a heirloom.. whereas earlier it was equally both.

Nah..there is a difference in what i said and what you said...There is no financial hit...in fact i will earn money on an asset which is sitting idle in let's say my locker....however given i am emotionally attached to my gold i will not go for earning few extra bucks...

I don't disagree whole-heartedly with second bold point, though interest in Stock Market and mutual funds is on a rise...however this is the class which this scheme can easily hit...b/w here is an interesting news...

Government's gold bond scheme a hit, gets 63,000 applications - The Economic Times