Inistial figures show that about 63,999 applications totalling to Rs 246.20 crore were received by banks and post offices for 917 kg of gold, the Ministry has said.
The government on Friday said that the Gold Sovereign Bond Scheme received an overwhelming response from retail investors with 63,000 applications amounting to Rs 246 crore, while the Gold Monetization Scheme, which has so far witnessed a "slow response", has been tweaked.
On Gold Bond Scheme, a Finance Ministry statement said, "This scheme saw an overwhelming response from investors throughout the country, and initial figures show that about 63,000 applications were received for a total of Rs 246.20 crore by banks and post offices for 917 kg of gold".
The first tranche of Sovereign Gold Bond, which was issued by the Reserve Bank of India (RBI) between November 5-20 through banks and post offices, saw an "overwhelming response" from retail investors.
This is as against a public sector banker saying last week that the gold bond scheme may only garner about Rs 150 crore.
"The scheme has already grossed up Rs 145 crore as of Thursday and we expect the scheme to end with Rs 150 crore by the end of Friday," a senior public sector banker told PTI on Thursday evening.
As regards to the Gold Monetization Scheme, the statement said that those depositing gold under the scheme will be exempt from Income Tax and Capital Gains Tax.
It said that after stakeholder consultation following "slow response" to this scheme, the government has taken seven decision to "improve the reach of the scheme".
These decisions also include gold depositors who can give their gold directly to the refiner without involving the collection and purity testing centres wherever it is acceptable to the banks.
"This will encourage the bulk depositors like Hindu Undivided Families (HUFs) and institutions to participate in the scheme," the statement said.
Also to increase the awareness among depositors, the government will continue the campaign in print media, social media, radio and television.
The Bureau of Indian Standards (BIS) has modified the licensing condition to refiners which is likely to increase the number of licences of gold refiners to nearly 20. "BIS has invited applications from more than 13,000 licensed jewellers to act as a Collection and Purity Testing Centres (CPTCs) in the scheme provided they have tie-up with BIS's licensed refiners," the statement added.
BIS is expected to complete the registration of 55 numbers of CPTCs by the end of December.
The Gold Bond Scheme has evoked "excellent response" with the government receiving 63,000 applications for purchase of bonds worth Rs 246 crore in the first tranche, a top official has said.
"Gold Bond Scheme: 63,000 applications for 917 kg. Gold amounting to Rs 246 crore in first tranche. Excellent response for an innovative product," Economic Affairs Secretary Shaktikanta Das tweeted.
Aimed at providing an alternative to buying physical gold, the government had sold gold bonds through banks and post offices between November 5-20. The allotment will take place on November 30.
The Gold Bond Scheme will offer investors an interest rate of 2.75% and a choice to buy bonds worth 2 grams of gold, up to a maximum of 500 grams. The issue price of the Sovereign Gold Bond for this tranche was Rs 2,684 per gram.
The tenor of the bond will be for a period of eight years with exit option from 5th year to be exercised on the interest payment dates.
The interest earned on gold bonds would be taxable, and capital gains tax shall be levied as in case of physical gold.
The bonds can be bought by resident Indian entities including individuals, HUFs, trusts, universities and charitable institutions.
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