RBI tweaks Gold Monetisation Scheme to onboard more institutions

Last Updated: Thu, Jan 10, 2019 17:53 hrs

Mumbai: The country's central bank on Wednesday has tweaked changes with the Gold Monetisation Scheme (GMS). The modifications now allow charitable institutions, central government and other entities to deposit under GMS.

"Persons eligible to make a deposit - Resident Indians [Individuals, HUFs, Proprietorship & Partnership firms, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government or any other entity owned by Central Government or State Government] can make deposits under the scheme," read the Reserve Bank's notification.

"The existing rules regarding joint operation of bank deposit accounts including nominations will be applicable to these gold deposits," RBI clarified.

In 2015, the government launched the GMS to mobilise the gold held by households and institutions in the country. Under the scheme, banks’ customers could deposit idle gold holdings for a fixed period and get interest in the range of 2.25-2.50%.

Last year, the Reserve Bank had tweaked the GMS in June to make it more attractive. At that time, the Reserve Bank said that short term deposits would be treated as bank's on-balance sheet liability. "These deposits will be made with the designated banks for a short period of 1-3 years (with a facility of roll over). Deposits can also be allowed for broken periods (e.g. 1 year 3 months; 2 years 4 months 5 days; etc.)," the Reserve Bank had said in its notification back then.

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