Gold Monetisation Scheme (GMS)-2015 notification Issued by RBI
The Reserve Bank of
India today issued a Direction to all Scheduled Commercial Banks (excluding
Regional Rural Banks) on implementation of the Gold Monetisation Scheme, 2015
notified by the Central Government.
Main features of Gold
Deposit Scheme
- The GMS will replace the
existing Gold Deposit Scheme, 1999. However, the deposits outstanding
under the Gold Deposit Scheme will be allowed to run till maturity unless
the depositors prematurely withdraw them.
- Resident Indians (Individuals,
HUF, Trusts including Mutual Funds/Exchange Traded Funds registered under
SEBI (Mutual Fund) Regulations and Companies) can make deposits under the
scheme.
- The minimum deposit at any one
time shall be raw gold (bars, coins, jewellery excluding stones and other
metals) equivalent to 30 grams of gold of 995 fineness. There is no maximum
limit for deposit under the scheme. The gold will be accepted at the
Collection and Purity Testing Centres (CPTC) certified by Bureau of Indian
Standards (BIS) and notified by the Central Government under the Scheme.
The deposit certificates will be issued by banks in equivalence of 995
fineness of gold.
- The principal and interest of
the deposit under the scheme will be denominated in gold.
- 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. There will
be provision for premature withdrawal subject to a minimum lock-in period
and penalty to be determined by individual banks.
- Interest on deposits under the
scheme will start accruing from the date of conversion of gold deposited
into tradable gold bars after refinement or 30 days after the receipt of
gold at the CPTC or the bank’s designated branch, as the case may be and
whichever is earlier.
- During the period from the date
of receipt of gold by the CPTC or the designated branch, as the case may
be, to the date on which interest starts accruing in the deposit, the gold
accepted by the CPTC or the designated branch of the bank shall be treated
as an item in safe custody held by the designated bank.
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