Indian PM launches gold monetization scheme

Indian Prime Minister Narendra Modi Thursday launched three ambitious gold schemes -- gold monetization scheme, gold bonds and the first-ever gold coins.

"Some 20,000 tonnes of gold is just lying unused. That is the reason we are poor. There's no reason why India should be poor," Modi said, after launching the schemes in the national capital.

He added: "If we make some effort in the right direction, we can be free of the tag. Today a big step is being taken -- gold related schemes are being launched."

Stating that the schemes will empower women, the prime minister said that "women in India don't have anything in their name but gold. Gold empowers women."

"This is unique to our culture, that there is such a system of women empowerment with the help of gold. We are preserving that giving our mothers, sisters, a sense of financial security," he said.

Modi added: "Through this scheme, we want to give this security, and women will be big factors in the success of this scheme."

Under the gold monetization scheme, people can deposit gold with the government and earn interest. Gold bonds will also fetch interest while the coins will bear the national emblem.

Indians have a love for the yellow metal and the gold monetization scheme is aimed at utilizing an estimated 20,000 tonnes of gold lying idle with Indian households.

It is also aimed at reducing the country's dependence on import of gold from other countries. Endit