IB Times
Prime Minister Narendra Modi launching gold schemes on 5 November in New Delhi.PIB India

The gold monetisation scheme has so far found few takers, but the gold bond scheme is performing "reasonably" well and likely to mop up nearly Rs 150 crore from the bond sale.

The gold bond scheme, aimed at reducing the physical demand for the metal, is the first of its kind launched by the Modi government on 5 November.

"The scheme has already grossed up Rs 145 crore as of today and we expect the scheme to end with Rs 150 crore by the end of the day tomorrow," a senior public sector banker told PTI.

The banker also said that "the numbers look reasonably good considering that this is the limited period offer and that a maiden one."

The bond sale, which is being run through designated banks and post offices, closes on 20 November 2015.

The Reserve Bank of India (RBI) has fixed the price of sovereign gold bonds at Rs 2,684 per gram. Investors will be paid a fixed rate of interest of 2.75% per annum on their initial investment. The interest will be paid half-yearly and bonds can be furnished as collateral to obtain loans.

The bonds will be available in both demat and physical forms. The maturity period for the bonds will be 8 years, with the option to exit from fifth year.

On the other hand, the gold monetisation scheme (GMS) has so far seen a weak response, attracting just 400 grams; it is estimated that 20,000 tonnes of gold are being held by households and institutions in India. 

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