Uttar Pradesh, largest populated state in the country accounts for 8 per cent of India's gold demand which translates to Rs 25,000 crore at current prices.
NEW DELHI(BullionStreet): My Gold Plan, jointly launched by India's Reliance Money Precious Metal and World Gold Council has attracted over 2000 approved distributors so far.
According to Reliance Money Precious Metal ( RMPM), the Plan is targeting enrolling over 10,000 jewellers and distributors across the country for its recently-launched My Gold Plan.
Targeting the huge unorganized gold markets in India, the world's largest gold consumer, RMPM said it will aggressively increase distribution and fulfilment reach across India within the current financial year.
Recently, Reliance Money launched My Gold Plan whereby customer can invest a minimum of Rs 1,000 per month which would be used for buying gold and customer can redeem the same for 24 karat pure gold coins or jewellery at the end of scheme.
The plan can be subscribed for a tenure ranging from 1 year to 15 years. Daily average pricing methodology splits the monthly subscription into equal parts and allots gold grams over 20 successive business days.
According to RMPM, Uttar Pradesh, largest populated state in the country accounts for 8 per cent of India's gold demand which translates to Rs 25,000 crore at current prices and nearly 65 per cent of this demand is from rural areas that largely buys gold from the unorganised sector.
The plan would target the unorganised gold market that accounts for 75 per cent of total gold sales in India.
The new plan is different from schemes offered by unorganised jewellers which only allowed consumers to buy gold at prices prevalent at the end of the tenure.
The plan makes gold accumulation transparent and straightforward, allowing customers to convert accumulated gold grams into coins or jewellery at multiple outlets across India, the company said.
The customers would be levied an administration charge of 1.5 per cent on each subscription, while there would be a 2.5 per cent pre-maturity charge as well.
The customers can opt for tenures ranging from one year to 15 years and the plan's daily average pricing methodology splits the monthly subscription into equal parts and allots gold grams over 20 successive business days.
At the end of the selected term of the plan, customers have the option to exchange their accumulated gold grams into 24 Karat gold coins or jewellery at designated outlets.