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Gold Monetization Scheme (GMS)

RBI vide its Master Direction No.DBR.IBD.No.45/23.67.003/2015-16 dated 22nd Oct’2015 (Updated as on 16.08.2019) has issued guidelines on Gold Monetization Scheme. The GMS is intended to mobilize gold held by households & institutions of the country and to facilitate its use for productive purposes and in the long run, to reduce country’s reliance on the import of gold. The customers can deposit their idle gold under GMS which will provide them safety, interest earnings and a lot more.

Main Features of the Scheme:

Gold Monetization Scheme
Purpose
  • To mobilize the idle gold in the country and put it into productive use.
  • To provide the customers an opportunity to earn interest income on their idle gold holdings.
Persons Eligible to make a deposit Resident Indians of the following categories:
  • 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.

Joint deposits of two or more eligible depositors are also allowed under the scheme and the deposit in such case shall be credited to the joint deposit account opened in the name of such depositors.
Deposit Quantity Minimum: 30 Grams
Maximum: No Limit
Types of deposit
Type of Scheme Tenor (in Year)
Short Term Bank Deposit (STBD) 1-3
Medium Term Government Deposit (MTGD) 5-7
Long Term Government Deposit (LTGD) 12-15

The deposit under Medium Term And Long Term will be accepted by the Bank on behalf of the Central Government.

(Deposites can be accepted for broken period also)
Rate of Interest & Payment (i) Short Term Bank Deposit(STBD):

Period Rate of Interest PA
1 year 0.50%
Above 1 year up to 2 years 0.60%
Above 2 years up to 3 years 0.75%

STBD: Non-Cumulative (on 31st March) every year or Cumulative (On Maturity) interest on maturity. The principal and interest on STBD shall be denominated in gold. On maturity Interest for broken period will also be paid.
(ii) Medium Term Government Deposit: 2.25% P.A.
(iii) Long Term Government Deposit: 2.50% P.A.

In the case of MTGD & LTGD, the principal will be denominated in gold. However, the interest shall be paid in Rupees annually on 31st March or cumulative interest on maturity. Broken period interest is paid at the time of maturity. Interest is calculated on gold value in rupees, at the time of deposit.

Depositor will have option to receive payment of simple interest annually or cumulative interest (compounding annually) on maturity. The option to be exercised at the time of deposit.
Acceptance of gold Gold is accepted in the form of raw gold i.e. Gold bars, Coins, Jewellery excluding stones and other metals. Customers to submit Application Form, Identification Proof, Address Proof and Inventory Form.
Nomination facility Nomination facility will be available on the lines of other Rupee Deposit Schemes.
Repayment STBD: Redemption of principal and interest at maturity will be at the option of the depositor, either in Gold or in INR equivalent of the deposited gold and accrued interest based on the price of gold prevailing at the time of redemption.

The option in this regard shall be made in writing by the depositor at the time of making the deposit itself and shall be irrevocable.

MTGD & LTGD: Redemption of the principal at maturity shall, at the option of the depositor, either in INR equivalent of the value of deposit gold at the time of redemption, or in Gold. However, any pre-mature redemption of MLTGD shall be only in INR. Where the redemption of the deposit is in gold, an administrative charge at a rate of 0.2% of the notional redemption amount in terms of INR shall be collected from depositor.
Premature payment STBD: Premature withdrawal may be permitted. However, in case of premature withdrawal before completion of ONE year from effective date of deposit, no interest shall be paid. In all other cases, prepayment penalty of 0.15% shall be levied.

Further, any premature redemption shall be in INR equivalent or gold at the discretion of the bank.

MTGD: Allowed to be withdraw any time after 3 years with penalty on interest.


LTGD: Allowed to be withdraw any time after 5 years with penalty on interest.

Interest penalty for MTGD & LTGD will be as per RBI Notification dated 9th Jan ‘2019.
Authorized Branches
S. No. ZONE CIRCLE D.NO. BRANCH NAME
1 AGRA AGRA 098300 SURYA NAGAR, AGRA
2 165600 AGRA, VIJAY NAGAR
3 BAREILLY 422600 CIVIL LINES, BAREILLY
4
CHANDIGARH
CHANDIGARH 001400 AMBALA CANTT. SADAR BAZAR
5 KURUKSHETRA 021900 JAGADHARI KB
6
ROHTAK
005300 BHIWANI
7 040500 REWARI
8

CHENNAI
HYDERABAD 020700 HYDERABAD BANK STREET
9 BANGALORE 004100 BANGALORE CITY
10
CHENNAI
030600 CHENNAI ANNA SALAI
11 252400 CHENNAI MINT STREET
12 COIMBATORE 009800 COIMBATORE
13 ERNAKULAM 170100 ERNAKULAM (M.G.ROAD)
14 KOZHIKODE 425800 CALICUT MAIN
15
DELHI
DELHI CENTRAL 011300 DELHI, CHANDNI CHOWK
16 015300 PARLIAMENT STREET, DELHI
17 062900 DELHI, NEW RAJINDER NAGAR
18 225400 IBB, New Delhi
19
DELHI SOUTH
016700 FARIDABAD, NIT
20 386200 UDYOG VIHAR GURGAON,
21 DELHI CENTRAL 0120 DELHI, GURUDWARA ROAD
22 NOIDA 067400 NAVYUG MARKET, GHAZIABAD
23 JAIPUR JAIPUR 406400 NEHRU PLACE, JAIPUR
24 KOLKATA BHUBANESHWAR 009900 BUXI BAZAR, CUTTACK
25 322100 BAPUJI NAGAR, BHUBNESHWR
26 KOLKATA 010000 BRABOURNE ROAD, KOLKATA
27 LUCKNOW KANPUR 188200 BIRHANA ROAD, KANPUR
28 LUCKNOW 167100 SUBHASH MARG, LUCKNOW
29 VARANASI 186800 MAHMOORGANJ, VARANASI
30 LUDHIANA JALANDHAR 023400 JALANDAR CHOWK SUDAN
31 LUDHIANA 029600 CHAURA BAZAR, LUDHIANA
32 AMRITSAR 001800 HALL BAZAR, AMRITSAR
33
MEERUT

MEERUT
03200 KHARI NAGAR
34 253400 E KUTCHERY ROAD, MEERUT
35 DEHRADUN 011100 PALTAN BAZAR, DEHRADUN
36 MUMBAI MUMBAI CITY 006200 MUMBAI PNB HOUSE
37 MUMBAI SUBURB 125300 MUMBAI SEEPZ ANDHERI
38 413800 PNB COMPLEX, CBD BELAPUR
39 PUNE 292300 PANAJI (PANJIM (MCB))
40 485000 BARAMATI
41 AHMEDABAD 0005 MASKATI MARKET
42 0971 AMBAWADI AHMEDABAD
43 SURAT 3406 RAOPURA VADODARA
44 0439 STATION ROAD SURAT
Grievance Redressal Mechanism Depositor to approach the Authorized Branch, where gold deposit has been made.
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