What Is Gold Monetisation Scheme?: GMS Modifies the existing Gold Deposit Scheme’ (GDS) and ‘Gold Metal Loan Scheme (GML) intends to increase the amount of gold held by people’s households and institutions in the country and to make it more accessible to produce, and in the long term reduce our dependence on the import of gold.
Do banks have to get RBI approval before they can participate in the Gold Monetisation Scheme, 2015?
No. But, banks must provide to RBI the details of implementation, including details of their Collection and Purity Testing Centers (CPTCs) as well as refiners with which they have signed a tripartite agreement and the branches participating in the scheme. Banks must also submit the amount of gold retrieved under the scheme for all branches in a condensed method each month, using the format that is prescribed according to the RBI’s website.
Who can deposit money?
Resident Indians (individuals, HUFs, Proprietorship, and Partnership firms Trusts, including Mutual Funds/Exchanges, Traded Funds that are registered under the SBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government or any other entity owned by the Central Government or State Government[as per Reserve Bank of India website.
What’s the procedure for a person to deposit money in the scheme? Does interest on deposit start accruing from Day 1 of depositing the gold with CPTC/GMCTA/designated branch?
An eligible depositor is able to establish a Gold Deposit account at any of the banks that are designated in the event that they meet the KYC guidelines. Typically, deposits under the scheme should be made through the CPTC/GMS – Mobilisation, Collection and Testing Agency (GMCTA) that will verify the purity of customers’ gold while they are present in order to issue deposit receipts for the standard 995 gold fineness to the depositor. It will as well inform the customer’s respective banks about the acceptance of the deposit.
The bank that is designated will credit the account of the Short-Term Bank Deposit (STBD) as well as the Medium/Long-Term Deposit (MLTGD) or Medium/Long-Term Deposit (MLTGD) client’s account, if it is the case at the time of deposit, or on the day as the deposit receipt from the depositor or within 30 days after the deposit of gold at the CPTC/GMCTA (regardless of whether or not the depositor has submitted an acknowledgment or not) the earlier date.
After that, the interest on deposits will begin at the time when gold is converted into gold bars that are tradable or 30 days following the receipt in gold from the CPTC/GMCTA whichever is later.