A barrier falls
Till recently, it was not easy for a retail investor to invest in a bank gold-saving scheme. The entry barriers were quite high.
For one, the tenure of lock-in for most banks was three to five years. This reduced the liquidity of the scheme significantly.
And more importantly, the minimum amount that could be deposited was 500 gm or gold worth Rs 1.5 crore (average price Rs 30000).
Last week, the Reserve Bank of India (RBI) removed the first barrier by bringing down the tenure to six months.
Text: Joydeep Ghosh & Yogini Joglekar, Business Standard