Please enable JavaScript.
Coggle requires JavaScript to display documents.
Gold monetization scheme - Coggle Diagram
Gold monetization scheme
About
Launched in 2015, MoF
Revamped from Gold deposit scheme,1999 and Gold metal loan scheme
Aims to mobilize idle gold held by households/institutions
Beneficiaries: Resident Indians ( Individuals, HUFs, proprietorship & partnership firms, trusts including mutual funds/ ETFs registered with SEBI, companies, charitable institutions, Central &state govt, entities owned by Govt)
Features
All SCBs (excluding RRBs) can implement through Gold deposit account
Deposits shall be made at the collection and purity testing centers, certified by BIS or designated bank branches
Can deposit min10 grams of raw gold, No upper limit
Duration
Short Term: 1-3 years
Interest rate: designated bank are free to fix
Medium Term : 5-7 years , Lock in -3 years
Interest: 2.25% p.a
Long term: 12- 15 years , Lock In -5 years
2.50% p.a
A broken period is also allowed (e.g 5 years 6 months)
On maturity
Redemption in Indian rupees or gold bars/coins (equal to market value of gold on maturity+ interest)
If premature, redemption is only in INR
Interest is S.I but if chosen to take after maturity then C.I. on medium and long term
Penalty incase of premature redemption