Re-Monetization – Gold and Jewellery .

India is probably the largest holder of gold, diamonds and precious jewelry in the world, and this asset in public hands, largely hidden, has been building for thousands of years. It is time that the nation provides the opportunity to the public to monetize this asset, both for their individual benefit as well as of the nation. The Rising India Party proposes the following:

  1. Pass a constitutional amendment guaranteeing to the citizens of India a permanent safeguard of their gold and jewelry wherein the State would have no right over such assets provided that these are declared and held in Bank depositories.
  2. Declare a Policy to monetize these assets through the issuing of Gold and Jewelry Depository Bonds up to 80% value of the Gold or Jewelry deposited with Banks that would earn a low tax-free interest for the depository even as the money is placed in the banking system for further lending on infrastructure and public development projects.
  3. Thus, the interest paid to depositors could be a low 2-3%, tax free, whereas the banking system could lend at 5-7 % into the economy.
  4. Alternatively, it could be nominated that the interest that the depositor would earn would be X% below benchmark rates as set by the RBI at any given point of time.
  5. Such a system would potentially create immense liquidity in the Indian economy, while monetizing a dead asset in the hands of the public.

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