Gold schemes are financial instruments that primarily operate as systematic investment plans or SIPs, where the investor deposits a small sum usually between INR 500 to INR 10000 monthly. However, the investors do not earn profits. Instead, they get discounts from the jeweller and interest from banks. It’s commonly seen that the dealer/jeweller gives a 75% to 90% discount on the final instalment amount.
Several prominent jewellers in the market offer gold schemes in India. Some of the significant league names include Tanishq, Malabar, Kalyan and PNG Jewellers.
Some banks such as ICICI Bank, Axis Bank, PNB and HDFC Bank have also introduced gold schemes.
Additionally, in 2015, gold schemes were announced in the budget. Idle-lying gold was encouraged to be lent to banks for interest. Jewellers in turn could borrow from the banks.
The three major gold schemes that emerged in India were the gold monetisation scheme, the gold coin and bullion scheme, and the sovereign gold bond scheme.