Government to pay banks commission in Gold Monetization Scheme: RBI

“The scheme will be reviewed regularly based on feedback so as to address any implementation issue and to make it more customer-friendly”, the RBI said. Any Medium Term Deposit will be allowed to be withdrawn after 3 years and any Long Term Deposit after 5 years.

Effectively the banks would be getting a 2.5 % commission for the scheme which will include the charges payable to the Collection and Purity Testing Centres/Refiners.

For long-term deposits, the tenure is 12 to 15 years and customers can earn 2.50 per cent interest per annum, the central bank said. The government has also launched the dedicated website www.finmin.nic.in/swarnabharat and toll free number 18001800000, which provide all the information of the schemes.

The Scheme is aimed at channelising gold worth over Rs 52 lakh crore lying with households into the banking system.

The government today said that over 900 kilogrammes of gold have been mobilised so far under the Gold Monetisation Scheme.

It also said there are seven refineries which have been granted licence under the Gold Monetisation Scheme (GMS).

The consumer would earn interest and, at the end of the deposit term, get the gold back in the form of bars. “These will be subject to a reduction in the interest payable”, the statement added. The gold deposited would be later refined for domestic objective and would help cut dependence on imports.

Joint deposits of two or more eligible depositors are also allowed under the scheme and the deposit in such case would be credited to the joint deposit account opened in the name of such depositors.

Gold to be deposited with the CPTCs/Refineries can be of any purity.

All deposits under the scheme would be made at the Collection and Purity Testing Centre (CPTC).

Mumbai: The Reserve Bank of India on Thursday permitted banks to sell India Gold Coins (IGC) with Ashok Chakra minted by MMTC through their branches.

“The terms and conditions shall be as per the contract between the designated bank and MMTC”, it said.

The Indian Banks Association (IBA) will communicate the list of the BIS licensed CPTCs and refiners to the banks.