How does Paytm Gold Gifting and Gold Savings Plan work?

How does Paytm Gold Gifting and Gold Savings Plan workHow does Paytm Gold Gifting and Gold Savings Plan work?


Few days back, Paytm has launched Gold Gifting Plan and Gold Savings Plan. Gone are those days when people used to gift cash or gold coin or gold jewelry. Today in this hi-tech world, purest form of gold can be gifted through digital world. While Paytm launched Digital Gold earlier, Gold Gifting and Gold Savings Plan launched now are unique plans in India. What is Paytm Gold Gift and Gold Savings Plan all about? How does Paytm Gold Gift and Gold Savings Plan work exactly? Are there any good features in this plan? Should you opt for Gold Gift and Savings Plan from Paytm?

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Paytm launched gold gifting and gold savings plan


India is the largest consumer of gold after China. It is considered as an auspicious gift during many festivals. Along with it, many also use as a saving tool to hedge against inflation. Many banking and non-banking institutions are launching gold scheme-based financial products. In this league, Paytm also came up with two new products, gold gifting and gold savings plan. 

1) Under Paytm Gold Gifting, one can gift the purest form of gold to each other within seconds.

2) The Gold Savings Plan is a trusted and affordable means for long-term wealth creation. It allows customers to save regularly in the form of gold according to their requirements and budget. They can choose the duration, frequency, and amount of gold they want to save. It is similar to investing through SIP route.   

What are the features of Paytm Gold Gifting plan?


Paytm Gold Gifting Plan is a unique product of Paytm in which one can gift gold to others through e-gift vouchers. An e-gift voucher is valid for 6 months from the date of its issue. The e-gift voucher cannot be redeemed for cash or credit. It cannot be exchanged for any other gift voucher also. The e-gift voucher is for one-time redemption only. In case of partial redemption, the left-over amount will be forfeited. In case, the recipient’s Gold balance exceeds Rs 50,000, he/she will need to perform KYC to be able to purchase gold beyond that limit. The voucher once issued will not be cancelled or refunded. If the e-gift voucher is lost or stolen, neither a new gift voucher is issued nor will the money be refunded in any manner.

How does Paytm Gold Gifting Plan works?


Under Paytm Gold Gifting Plan, an e-gift voucher is issued with a validation period of 6 months from its date of issue. This e-gift voucher can be used only for Paytm Gold Purchase on Paytm apps. When the receiver redeems the gift card, a GAP account will automatically opened for storing his gold balance. The receiver of the gift will get an email or SMS informing the unique promo code.  The recipient of the gift voucher agrees to the terms and conditions of the Gold Accumulation Plan offered by MMTC-PAMP.        

What are the features of Paytm Gold Savings Plan?


The Paytm Gold Savings Plan enables customer to save and invest regularly in gold very conveniently. There is no requisite of minimum or maximum investment and customer can buy gold for any amount he wishes to. Moreover, there is no lock-in period also. MMTC PAMP has been given the task of maintaining the lockers used to store the gold of customers. These lockers are 100% insured and free of cost. They can get the delivery of this gold at anytime. There is an online tool named Gold Passbook which keeps the customer updated on their wealth.

How does Paytm Gold Savings Plan work?


Paytm Gold Savings Plan is a mode through which you can save and invest money in the form of gold. You can buy any amount of precious metal in terms of rupee or grams using your Paytm account. You can purchase gold 24 hours a day, 365 days including public and bank holidays. The gold you purchase is kept safely and securely with MMTC-PAMP without any charges. At the time of redemption, you can get the physical delivery of gold or you can sell your gold holdings back to MMTC-PAMP through Paytm platform at the rate displayed on Paytm and the money gets credited to your account.   

Are there any limitations in these 2 plans?


Negative points in Gold Gifting plan: Paytm Gold e-gift voucher is valid only for 6 months from the date of its issue. Due to any reason, if the recipient does not redeem it in this period, the amount is forfeited and cannot be received by any way. Moreover, if the recipient redeems it at the time when the value of gold goes down from what the buyer has purchased, then he has to pay the balance from his pocket. It is not viable and justified in case of gifts.

Negative points on Gold Savings plan: Under Gold Savings Plan, you do not earn any interest or returns on it.  The returns are the only profit made in the difference of buying and selling price. If you do not make any transactions for 6 months in the gold Savings Account, the account becomes dormant and your balance is transferred to a separate account. You can claim the amount by providing relevant id-proofs and account details for settlement. Making transactions frequently to keep the account active is a cumbersome and hefty task. 

Also Read: Best Investment Options to get higher returns

Should you opt for Paytm Gold Gift or Gold Savings plans?


It is not necessary that all people attract towards accumulation of gold. Some people may not like the concept of e-gift vouchers. Moreover, if you gift gold coupon of very high rate and later on prices decline, the receiver has to pay the difference amount to settle the account. The validation period of e-gift voucher is also very small (i.e. 6 months). This may make your gift an undesirable one. You should gift such gift to only those whom you know are keenly interested in this field and would avail the voucher in time.  

Paytm Gold Savings Plan can be considered as a good option for investment as it is a highly liquid investment. It can be used as an effective tool for accumulating gold as part of your investment portfolio. It is not mandatory to invest regularly in this scheme. It is purely your wish. So, whenever you have excess funds or you feel the rates of gold to be competitive, you can exercise this option. 

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Suresh

How does Paytm Gold Gifting and Gold Savings Plan work

The Author

Suresh KP

Suresh KP i.e. me have written 1,800+ articles on this blog. I have done by B.Com from Osmania University and then MBA-Finance from Symbiosis University, Pune. I have over 20 years of experience in analyzing various investment options and money saving ideas. I love doing financial planning, Mutual Fund Analysis, Searching long term Stocks for wealth creation, IPOs, reviewing Insurance Products, analysing Health insurance Plans etc.

4 Comments

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  1. Gold ETF is the best alternative for this scheme. This scheme is not user-friendly. As suggested this scheme is not viable.  I also seek your opinion on "GOLD +"  scheme announced recently.  Thanks and regards

     

    1. Hi Venkateswan, I could not hear about Gold+ scheme recently, pls provide complete name of the scheme which you are refferring

      1. Dear sir,
        The scheme is called “GL+”, promoted by a jeweller called KFJ.
        The link is pasted below for your perusal.

        https://www.thehindubusinessline.com/money-and-banking/an-interestfree-gold-loan-thats-catching-the-eye/article8995375.ece

        Thanks and regards

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