So you buying gold on this auspicious festive season and think you are losing the hold on your cash? Well, you can actually make money of it. Buyers can deposit their gold in banks and earn interest on it. You read it right!
Reserve Bank Of India (RBI) issued norms for gold monetization scheme that benefits the common man. All major commercial banks have been allowed to offer this scheme and it shall always remain a unique initiative of commoners who are always worried about savings and security of their investment.
Here are 14 things to know about interest on your gold –
1. Resident Indians (Individuals, HUF, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations and Companies) can make deposits under the scheme.
2. The minimum deposit at any one time shall be raw gold (bars, coins, jewellery excluding stones and other metals) equivalent to 30 grams of gold of 995 fineness. There is no maximum limit for deposit under the scheme.
3. The gold will be checked at the Collection and Purity Testing Centres (CPTC) certified by Bureau of Indian Standards (BIS).
4. The deposit certificates will be issued by banks in equivalence of 995 fineness of gold.
5. Gold deposits will be of three types – Short Term (1-3 years) Medium Term (5-7 years) and Long Term (12-15 years)
6. There will be provision for premature withdrawal subject to a minimum lock-in period and penalty to be determined by individual banks.
7. Interest on deposits under the scheme will start accruing within 30 days after the receipt of gold.
8. The banks are free to fix the interest rates on these deposits.
9. The principal and interest of the deposit under the scheme will be denominated in gold.
10. The principal on maturity and interest will be linked to the prevailing price of gold at that time.
11. The depositor will have the option to either take it in gold or equivalent rupee terms. At the time of opening the gold deposit account, the investor has to specify the option and once chosen it cannot be changed.
12. Joint deposits of two or more depositors will be allowed under the scheme. The existing rules regarding joint operation of bank deposit accounts including nominations will be applicable to these gold deposits.
13. The opening of gold deposit accounts will be subject to the same rules with regard to customer identification (KYC) as are applicable to any other deposit account.
14. Complaints against banks regarding any discrepancy in issuance of receipts and deposit certificates, redemption of deposits, payment of interest will be handled first by the bank’s grievance redress process and then by the Reserve Bank’s Banking Ombudsman.
We are you are liking how banking is gradually becoming innovative for customers, hoping for more..
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