The Reserve Bank of India has issued directions to all scheduled commercial banks on the Gold Monetisation Scheme which is set to replace the Gold Deposit Scheme of 1999. As per the guidelines, banks will be allowed to fix their own interest rates on gold deposits. These deposits outstanding under the Gold Deposit Scheme will be allowed to run till maturity, unless the depositors prematurely withdraw them.
The bank has said that resident Indians, including individuals, HUFs and trusts including mutual funds registered under Sebi regulations and companies can make deposits under the scheme. The minimum deposit at any one time shall be raw gold bars, coins, and jewellery excluding stones and other metals- equivalent to 30 grams of gold of 995 fineness. The statement said, “There is no maximum limit for deposit under the scheme. The gold will be accepted at the Collection and Purity Testing Centres certified by Bureau of Indian Standards and notified by the Central government under the scheme. The deposit certificates will be issued by banks in equivalence of 995 fineness of gold.”
As per the guidelines, banks will be free to set interest rate on such deposit, and principal and interest of the deposit will be denominated in gold. “Redemption of principal and interest at maturity will, at the option of the depositor be either in Indian rupee equivalent of the deposited gold and accrued interest based on the price of gold prevailing at the time of redemption, or in gold. The option in this regard shall be made in writing by the depositor at the time of making the deposit and shall be irrevocable,” it said. “The designated banks will accept gold deposits under the Short Term (1-3 years) Bank Deposit (STBD) as well as Medium (5-7 years) and Long (12-15 years) Term Government Deposit Schemes. While the former will be accepted by banks on their own account, the latter will be on behalf of Government of India.”
