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What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?
- a)Expansion of the Sovereign Gold Bond scheme
- b)Discontinuation of Medium-Term and Long-Term Deposits
- c)Introduction of new types of gold deposits
- d)Increase in the interest rates for gold deposits
Correct answer is option 'B'. Can you explain this answer?
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What significant change has the Government of India implemented regard...
Significant Change in Gold Monetisation Scheme
The Government of India has recently made a notable adjustment to the Gold Monetisation Scheme (GMS) by discontinuing the medium-term and long-term deposit options. This decision has significant implications for the scheme and its participants.
Understanding the Gold Monetisation Scheme (GMS)
- The GMS was introduced to mobilize the idle gold held by individuals and institutions in India.
- It allows citizens to deposit their gold with banks in exchange for interest, making it a vital tool for reducing gold imports and increasing financial inclusion.
What the Discontinuation Means
- The removal of medium-term and long-term deposit options simplifies the scheme, focusing on short-term deposits.
- This change encourages quicker liquidity and flexibility, as customers can now opt for shorter tenures.
Impact on Gold Holders
- Gold holders will need to reassess their investment strategies, as the longer commitment periods are no longer available.
- The focus on short-term deposits may attract more participants looking for immediate returns.
Rationale Behind the Change
- The government aims to streamline the GMS, making it more user-friendly and appealing to investors.
- By discontinuing longer deposit terms, the scheme can adapt more rapidly to changing market conditions and investor preferences.
Conclusion
The discontinuation of medium-term and long-term deposits in the Gold Monetisation Scheme marks a significant shift, emphasizing short-term investment opportunities while enhancing the overall efficiency of the program. This change is likely to stimulate greater participation among gold holders, ultimately aiding in the broader objective of gold mobilization in India.
The Government of India has recently made a notable adjustment to the Gold Monetisation Scheme (GMS) by discontinuing the medium-term and long-term deposit options. This decision has significant implications for the scheme and its participants.
Understanding the Gold Monetisation Scheme (GMS)
- The GMS was introduced to mobilize the idle gold held by individuals and institutions in India.
- It allows citizens to deposit their gold with banks in exchange for interest, making it a vital tool for reducing gold imports and increasing financial inclusion.
What the Discontinuation Means
- The removal of medium-term and long-term deposit options simplifies the scheme, focusing on short-term deposits.
- This change encourages quicker liquidity and flexibility, as customers can now opt for shorter tenures.
Impact on Gold Holders
- Gold holders will need to reassess their investment strategies, as the longer commitment periods are no longer available.
- The focus on short-term deposits may attract more participants looking for immediate returns.
Rationale Behind the Change
- The government aims to streamline the GMS, making it more user-friendly and appealing to investors.
- By discontinuing longer deposit terms, the scheme can adapt more rapidly to changing market conditions and investor preferences.
Conclusion
The discontinuation of medium-term and long-term deposits in the Gold Monetisation Scheme marks a significant shift, emphasizing short-term investment opportunities while enhancing the overall efficiency of the program. This change is likely to stimulate greater participation among gold holders, ultimately aiding in the broader objective of gold mobilization in India.
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What significant change has the Government of India implemented regard...
The Government of India has announced the discontinuation of Medium-Term and Long-Term Government Deposits under the Gold Monetisation Scheme, effective from March 26, 2025. This change marks a significant shift in how gold deposits are managed in the country, affecting how individuals and institutions can utilize their gold assets going forward.
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What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer? for Bank Exams 2025 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Bank Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer?.
What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer? for Bank Exams 2025 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Bank Exams 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer?.
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What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of What significant change has the Government of India implemented regarding the Gold Monetisation Scheme (GMS)?a) Expansion of the Sovereign Gold Bond schemeb) Discontinuation of Medium-Term and Long-Term Depositsc) Introduction of new types of gold depositsd) Increase in the interest rates for gold depositsCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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