Govt nod for gold bonds, new monetization scheme

September 10, 2015

New Delhi, Sep 10: The government on Wednesday cleared two moves meant to reduce the import of gold. While the first entails the issue of gold bonds that individuals can invest in instead of buying it in physical form, the second is the Gold Monetization Scheme or a new deposit tool meant to help people earn returns on the precious metal lying idle in bank lockers. The gold deposited through this scheme will be re-circulated in the economy, helping cut imports.

goldbarBoth the proposals were announced in the last Budget . But the returns that the two instruments will offer will only be announced after a few weeks. As a result, investment consultants are advising people to wait for the details to come out.

India is among the top two markets for gold with the demand for bars and coins estimated at 300 tonnes annually as households have traditionally seen it as a safe investment. But the high demand and large quantities of imports distort the trade numbers and put pressure on the current account deficit and, in adverse situations, impacts the exchange rate.

As a result, the government announced sovereign gold bonds, which can be purchased by resident Indians with annual cap on investment of up to 500 grams per person. The bonds will be in denominations of 5, 10, 50 and 100 grams and will earn interest, which could be floating or at a fixed rate. So, instead of buying gold, you buy the bonds and on redemption, the amount will be transferred to your bank account.

When it comes to the price of the yellow metal, the government said it would be based on a reference rate fixed by RBI. The bonds will have a tenure of five-seven years and will be sold through banks, post offices, non-banking finance companies and agents hawking National Savings Certificate (NSC).

Just as gold is mortgaged during tough times, the bonds can be used as collateral for loans and will be traded on exchanges. In a statement, the government said the exemption from capital gains would be considered in the next budget with the benefit of indexation available to investors.

"The deposit will not be hedged and all risks associated with gold price and currency will be borne by GOl (government) through the Gold Reserve Fund. The position may be reviewed in case Gold Reserve Fund becomes unsustainable," an official statement said.

Gold Monetisation Scheme

If the move to issue gold bonds is meant to wean away buyers of the metal in physical form, the decision to launch a revamped gold monetisation scheme is aimed at tapping into vast quantities lying with households although similar schemes have failed to generate interest in the past.

Unlike gold lying at home, the amount deposited under the Gold Monetisation Scheme will fetch interest, much like a savings bank account, although the returns will be far lower at 1.5-2%. But on the flip side, the scheme is targeted at individuals who are willing to deposit a minimum 30 grams.

You will need to get a purity certificate from an approved Assaying and Hallmarking Centre and open a Gold Savings Account. You will then deposit the gold with a bank -- which will transfer it to a warehouse -- and choose a tenure which can range from one-three years (with rollover in multiples of one year to 12-15 years). "Like a fixed deposit, breaking of lock-in period will be allowed in either of the options and there will be a penalty on premature redemption (including part withdrawal)," a statement said.

When it comes to redemption, if you are a short-term investor, you will have the option to redeem it either in cash or the equivalent quantity of gold. But medium- and long-term deposits will only be redeemed in cash.

To reduce imports and use the gold mopped up through the GMS, there will be a loan facility for jewellers.

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News Network
March 3,2020

Wayanad, Mar 3: Anguished over the alleged delay in receiving flood relief from the Kerala government, a 42-year-old man committed suicide in Wayanad district, police said on Tuesday. Sanal Kumar, a native of Thrikaipatta in Meppadi near here was found hanging inside the temporary shelter built by his friends and local people on Monday. He was among the hundreds who had lost their homes in the August 2019 floods.

His home, built on a three cent plot, had been damaged partially in 2018 floods and completely in the 2019 deluge. Family members of the deceased alleged that it was due undue delay on the part of the authorities in allotting funds for rebuilding his house that drove Kumar to take the extreme step. Kumar was hoping to get a house under the Life Mission project, sources said.

A relative said Kumar had only 3 cent of land and had lot of debts. Even the Rs 10,000 assistance promised by the state government for the flood affected, had not reached him. Since the past two years he had filed several applications for assistance and apporached many revenue authroties for the promised government assistance, but it never came, the locals alleged.

According to K K Sahad, president of Meppadi Panchayat the deceased had some other financial issues and it was not the delay in rehabilitation that made him commit suicide. "It is true that he was not included in the first list of beneficiaries under the LIFE project as he had to have "pattayam" (land records) for his land.

However, he was included in the second list, thanks to the dilution in the norms that possession was enough for those who had no 'pattayam' for their property. The amount of Rs 4 lakhs was sanctioned for him, but was delayed a bit due to some technical issues."

Wayanad MLA C K Saseendran described it as an "extremely sad" development. As Kumar had some difficulties in producing the land recrods, the authroties had been unable to include his name in the LIFE housing scheme in the first phase.

The matter has been brought before the notice of the revenue authorities, he said. Vythiri Tahsildar, Abdul Hameed, visited Kumar's relatives this morning as the family members of the deceased wanted his presence before the body was taken for post-mortem.

"There was some technical issues with regard to the land as it falls within the adhivasi reserve. But they were occupying it for long. However, the issue has been sorted out and that his family members would be getting the eligibility amount of four lakhs," Hameed said.

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Agencies
March 12,2020

The Ministry of Health and Family Welfare has prepared a draft for guidelines for home quarantine, as well as for the use of masks by public, in view of coronavirus.

What to do in Home Quarantine?

The government says, for those taking refuge to home quarantine should stay in a well-ventilated single-room preferably with an attached or separate toilet. It adds that if another family member needs to stay in the same room, it's advisable to maintain a distance of at least 1 metre between the two.

The government advised, coronavirus patients to stay away from elderly people, pregnant women, children and persons with co-morbidities within the household as their immune system may be low. The health minister also suggested to restrict the patient's movement within the house. "Under no circumstances attend any social/religious gathering e.g. wedding, condolences, etc, said the guideline.

It also instructed the corona virus infected person to avoid sharing household items like dishes, drinking glasses, cups, eating utensils, towels, bedding, or other items with others at home. The guideline also demanded that even though home quarantine, the patient should wear a surgical mask at all times. "The mask should be changed every 6-8 hours and disposed off. Disposable masks are never to be reused, it added.

"Masks used by patients/ caregivers/ close contacts during home care should be disinfected using ordinary bleach solution (5 per cent) or sodium hypochlorite solution (1%) and then disposed of either by burning or deep burial," instructs the government.

Even for family members of a patient, the health ministry clearly instructs to use disposable gloves when cleaning the surfaces or handling soiled linen. No visitors, under any circumstances will be allowed, said the guideline.

"In case the person being quarantined becomes symptomatic, all his close contacts will be home quarantined (for 14 days) and followed up for an additional 14 days or till the report of such case turns out negative on lab testing," states the draft.

How to wear & dump masks?

There is a specific and elaborate do's and don'ts also released by the ministry. For those unsure in which mask to choose, it says, "Medical masks of different sizes and shapes are available in the market. The common ones are flat pleated masks of woven fabric which covers the nose and mouth and affixed behind the head with straps/ elastic fasteners. There are also conical or duck bill shaped masks with valves (or without valves) that fit in the contour of face over the nose and mouth, but are costlier."

However, the ministry warns, medical masks should not be used by healthy persons who are not having any symptoms "because it creates a false sense of security". Instead, it suggests to refrain from touching face, mouth, nose and eyes as well as washing hands regularly with soap for 20 seconds each time.

However, when a person develops a cough or fever, the suspected patient needs to switch to medical masks. "Use of medical three layer masks when ill, will prevent your infection from spreading to others. However you also need to wash your hands frequently to avoid spreading infection to others," read the guideline.

Even if one is not tested positive but showing symptoms, they are advised to wear masks while visiting a healthcare facility. "Close family contacts of such suspect/confirmed cases undergoing home care should also use Triple layer medical mask," it warns.

The ministry has also given point by point guideline on how to use a mask like to make sure that they are facing down while unfolding or for that matter to ensure there are no gaps on either side of the mask.

It even warns, "Fit flexible nose piece (a metallic strip that can easily be located) over nose-bridge" to ensure no one else are infected. The government also warns against simple dumping of the masks once used. Instead one should disinfect "using ordinary bleach solution (5 per cent) or sodium hypochlorite solution (1 per cent) and then disposed of either by burning or deep burial," says the Health Ministry.

COVID-19 emerged in early December 2019 in China's Wuhan province and has now spread to over 100 countries. As on March 9, 2020, India has reported 42 cases mostly among those who had travelled from affected countries.

However the government says, "It causes a minor illness in majority of patients with symptoms of fever and or cough. A small proportion of such persons may progress to severe disease with difficulty in breathing."

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News Network
March 5,2020

Bharuch, Mar 5: Vijay Kumar, a resident of the Tamil Nadu has sought help from his friend Abdulkhuda Mohd Hanif Shaikh who is residing in Gujarat to build a temple in his village.

Abdulkhuda Mohd Hanif Shaikh, who also belongs to Tamil Nadu's Paraipatti village and has been residing in Gujarat' Bharuch for a decade has collected Rs 3 lakh from his friends as a donation to build the temple in Paraipatti village in Dindigul district.

"They'd told me 4 months ago and came to me 10 days back. From Vapi to Mehsana, there are several Madrasis, even here in the village too. I personally went to them and collected around Rs 3 Lakh," Shaikh said.

Vijay Kumar said that he stayed in Gujarat for ten days and collected Rs 3 Lakh with him.

"I had sought help from him. I stayed here in Gujarat for 10 days, and went with him from people to people and collected Rs 3 Lakh. No one lives like Hindus or Muslims in our village, everyone lives like friends," he said.

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