MUMBAI, Feb 14 (Reuters) - India's central bank has relaxed
rules on gold deposit scheme offered by banks by allowing the
lenders to offer the product with lesser maturity.
The Reserve Bank of India said in a release on Thursday that
banks can offer gold deposits maturing in 6 months to 7 years
period compared with 3 years to 7 years earlier. The central
bank also said the banks do not need to obtain its approval for
floating such schemes.
The RBI plans to mobilise the unused gold by lending it to
importers and exporters of the yellow metal, in a move it hopes
will bring down the demand for physical gold. It wants banks to
encourage products linked to accepting physical gold as deposits
and investing public money in gold related products.
(Reporting by Suvashree Dey Choudhury and Siddesh Mayenkar;
Editing by Anand Basu)