Prime Minister Narendra Modi has, on Sunday said that the government will launch a gold monetization scheme. PM Modi was addressing the nation through Mann Ki Baat.

He said, that the scheme will be launched in the run up to Dhanteras, the gold and silver buying festival.

The godl monetisation scheme was first announced in the 2015-16 budget by Finance Minister Arun Jaitley, which will help monetise gold worth nearly Rs 60 lakh crore held by households and institutions.

Under the gold monetisation scheme, people can now park gold in banks to earn a rate of interest on it. This means, people will soon earn interest on the gold they have, over the years, earning a return over and above the rise in the value of gold.

ALSO READ: Gold monetisation scheme: Should you invest?

Prime Minister Modi also talked about the sovereign gold bond scheme, under which will be able to buy gold bonds. At the time of selling, customers can earn returns according to the current price of gold. Paper gold will eliminate the need to buy physical gold for investment, bringing down the need to safeguard it.

ALSO READ: Why the government got it completely wrong with its gold monetisation scheme

Modi said 5 and 10 gram gold coins with Ashoka Chakra engraved on it, and 20 grams bullion coins will also be issued.

The Reserve Bank of India issued directions on the implementation of the gold monetisation scheme on October 22.