Somnath Temple to invest in Gold Monetisation Scheme

• Somnath Temple Trust is all set to become first temple from Gujarat to deposit its idle gold in the Gold Monetization Scheme.

• The trust has around 35 kilo grams of gold and will deposit the gold which is not in day-to-day use of the temple. 

• Prime Minister Narendra Modi is also a trustee of the Somnath Temple Trust.

• The management will segregate the pure gold from the whole lot to finalise the quantum of gold which can be deposited.

Somanath temple:

• The Somnath temple located in Prabhas Patan near Veraval in Saurashtra on the western coast of Gujarat, India, is the first among the twelve Jyotirlinga shrines of Shiva.

• Somnath Temple is known as “the Shrine Eternal”. This legendary temple has been destroyed and rebuilt several times by Islamic kings and Hindu kings respectively.

• Most recently it was rebuilt in November 1947, when Vallabhbhai Patel visited the area for the integration of Junagadh and mooted a plan for restoration.

• The present temple is built in the Chalukya style of temple architecture or “Kailash Mahameru Prasad” style.

• The temple is situated at such a place that there is no land in a straight line between Somnath seashore until Antarctica.

What is Gold Monetisation Scheme (GMS)?

1.It replaces the existing Gold Deposit Scheme, 1999.

2.The deposits outstanding under the Gold Deposit Scheme will be allowed to run till maturity unless the depositors prematurely withdraw them.

3.Any Resident Indians can make deposits under the scheme.

4. The minimum deposit at any one time shall be raw gold  equivalent to 30 grams of gold.

5.There is no maximum limit for deposit under the scheme.

6.The gold will be accepted at the Collection and Purity Testing Centres (CPTC) .

7.The deposit certificates will be issued by banks in equivalent  of 995 fineness of gold.

8.The designated banks will accept gold deposits under

• The Short Term (1-3 years) Bank Deposit (STBD)

• Medium (5-7 years) and Long (12-15 years) Term Government Deposit Schemes (MLTGD).

9.The The Short Term  Bank Deposit (STBD) will be accepted by banks on their own account

10.The Medium  and Long Term Government Deposit Schemes will be accepted on behalf of the Government of India.

11.There will be provision for premature withdrawal subject to a minimum lock-in period and penalty to be determined by individual banks for the STBD.

12.The interest rate  in the STBD will be determined by the banks.

13.The interest rate in the medium term bonds has been fixed at 2.25% and for the long term bonds is 2.5% for the bonds issued in 2015-16.

14.The designated banks may sell or lend the gold accepted under STBD to MMTC for minting India Gold Coins (IGC) and to jewellers, or sell it to other designated banks participating in GMS.

15.The gold deposited under MLTGD will be auctioned by MMTC or any other agency authorised by the Central Government and the sale proceeds credited to the Central Government’s account with the Reserve Bank of India.

16.Earnings are exempt from capital gains tax, wealth tax and income tax. There will be no capital gains tax on the appreciation in the value of gold deposited, or on the interest you make from it.

WHAT WILL THE BANKS DO WITH THE GOLD?

The designated banks may sell or lend the gold accepted under the short-term bank deposit to MMTC for minting India Gold Coins and to jewellers, or sell it to other designated banks participating in the scheme.