Gold Monetisation, Bond Schemes Approved: Arun Jaitley

Finance Minister Arun Jaitley addressed a press conference after the Cabinet met earlier in the day. Telecom Minister Ravi Shankar Prasad and Power and Coal Minister Piyush Goyal were also in attendance. Here are the highlights:

• Cabinet approves 6% hike in dearness allowance


• Cabinet approves gold bond scheme


• RBI to issue gold bonds on behalf of the government


• The government will declare interest on the bonds from time to time


• Maximum limit of 500 gm per person per year in gold bonds


• People can buy gold bonds instead of physical gold via gold bond scheme


• Gold bond could be for minimum of 5 to 7 years


• Gold bonds will pay interest and its price will also be linked to gold


• Gold bonds will be done by banks, NBFCs and other authorized entities


• Cabinet has also approved gold monetisation scheme


• Anyone who has gold as idle asset can deposit them


• Deposited gold to earn interest


• India imports about 1000 tonnes of gold and these schemes will help to reduce imports


• 100% FDI in white label ATM allowed


• Cabinet also approved spectrum trading norms


• Ravi Shankar Prasad: Spectrum ownership is with government


• Ravi Shankar Prasad: No government permission needed for trading


• Ravi Shankar Prasad: Buyer will pay 1% trading fee


• Ravi Shankar Prasad: Trading to enable contiguous spectrum


• Ravi Shankar Prasad: Spectrum trading allowed in all bands