Gold Monetization Scheme/Liberalized Remittance Scheme

Gold Monetization Scheme
Gold Monetization Scheme was launched by Government of India in 2015 and managed by Reserve Bank of India. The scheme is known by the name Gold Monetisation Scheme, 2015.
How it works: Under this Gold Monetization Scheme a customer who possesses Gold can deposit their gold in any form in a GMS account to earn interest as the price of the gold metal goes up.
Purpose: The main purpose of this scheme is to reduce the import of Gold by India. This will happen because the household gold will be mobilized as per this scheme and there will be more gold in the market. 
The Gold Monetization Scheme has modified the existing 'Gold Deposit Scheme' (GDS) and 'Gold Metal Loan Scheme (GML).
Basic Information about the Scheme
Who can deposit Gold: Only Resident Indians can open such accounts with the bank where they can deposit the gold. The subcategory includes- Individuals, Hindu Undivided Families, Proprietorship and Partnership firms, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government or any other entity owned by Central Government or State Government.
Joint deposits of two or more eligible depositors are also allowed under the scheme.
Where can one deposit the Gold under GMS:The customer can deposit gold at Collection and Purity Testing Centre (CPTC) or any bank branch designated for this business. However, this gold must be first examined at CPTC. 
Banks may identify at least one branch in a State/Union Territory where they have presence to accept the deposits under the Scheme.
What is CPTC- Collection and Purity Testing Centre (CPTC):–The collection and assaying centres certified by the Bureau of Indian Standards (BIS) and notified by the Central Government for the purpose of handling gold deposited and redeemed under GMS.
What kind of Gold can be deposited: raw gold(bars, coins, jewelry excluding stones and other metals) with the amount of 995 fineness gold.
Minimum Quantity of Gold: The minimum deposit at any one time shall be 30 grams
Maximum Quantity of Gold: No Maximum Limit
Interest Rate and Type of Gold Deposit Scheme
There are two types of Gold Deposit Scheme under the Gold Monetization Scheme:
First: Short Term Bank Deposit
Second: Medium and Long Term Government Deposit
Short Term Bank Deposit
Time Period of Deposit– 1 to 3 years
Interest Rate: Decided by the bank. The interest can be paid in (i) Indian Rupee equivalent of the deposited gold or (ii) denominated in grams of gold.
Medium and Long Term Government Deposit
Time Period of Deposit for Medium Term5-7 years (Minimum Lock in period- 3 years)
Time Period of Deposit for Long Term12-15 years (Minimum Lock in period- 5 years)
Liberalised Remittance Scheme (LRS):Do you know about Liberalised Remittance Scheme (LRS)? How much money can you send abroad? What is the limit under LRS? If you know then just go this post for a quick revision. If you don't then read this post thoroughly. 
Introduction
Have you ever thought if you need to send money from India to any foreign country that is outside India, what is the maximum amount of money that you can send? We will answer this question here.
Liberalised Remittance Scheme (LRS)
The Liberalised Remittance Scheme (LRS) was established by Reserve Bank of India and it permits citizens of India to transfer funds abroad. 
Since sending money abroad involves foreign exchange, let's see some important points related to foreign exchange in India.
Important Points related to Foreign Exchange in India
Foreign Exchange in India is managed by the Reserve Bank of India provided by the Foreign Exchange Management Act, 1999. Under the FEMA Act 1999, all transactions involving foreign exchange have been classified either as capital account transactions or current account transactions. Capital account transactions- It alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India. Current account transactions- It does not alter his / her assets or liabilities, including contingent liabilities, outside India are current account transactions. ln terms of Section 5 of the FEMA,persons resident in India are free to buy or sell foreign exchange for any current account transaction except for those transactions for which drawal of foreign exchange has been prohibited by Central Government
What is Liberalised Remittance Scheme (LRS)
Under the Liberalised Remittance Scheme of RBI, all resident Indian individuals (including minors), are allowed to freely remit up to USD 2,50,000 in each financial year (April to March) for any permissible current or capital account transaction or a combination of both.
When the scheme was introduced in the year 2004, that time this limit was of USD 25,000. With time, the scheme has been liberalised to allow more transfer of funds.
For whom LRS is not applicable?
The Liberalised Remittance Scheme (LRS) is not available to corporates, partnership firms, Hindu Undivided Family, Trusts etc. It is available for sole proprietor. 
Important Points regarding Liberalised Remittance Scheme (LRS)
You cannot remit money under LRS to countries identified by the Financial Action Task Force (FATF) as "non- cooperative countries and territories". It is mandatory under the Liberalised Remittance Scheme (LRS) to have Permanent Account Number (PAN) for sending outward remittances. Maximum Frequency of Remittance: There are no restrictions on the frequency of remittances under LRS. However, the sum total of all remittance should not be more than USD 2,50,000 in a Financial Year. The remittances can be made in any freely convertible foreign currency.

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