The Reserve Bank of India (RBI) made some changes in the Gold Monetisation Scheme (GMS) by including charitable institutions and the Central government, among others.
About:
Background: In 2015, the government launched the Gold Monetisation Scheme (GMS).
Objective: The purpose of the scheme is to mobilise gold held by households and institutions of the country and facilitate its use for productive purposes, and in long run, reduce the country’s reliance on import of gold.
Features:
GMS is in the nature of a term deposit in gold. The scheme allows banks' customers to deposit their idle gold holdings for a fixed period in return for interest in the range of 2.25-2.50 per cent.
Eligible depositor can deposit their gold in the Medium & Long Term Govt. Deposit (MLTGD) Scheme. The Medium Term Government Deposit (MTGD) can be made for 5-7 years and Long Term Government Deposit (LTGD) for 12-15 Years.
The deposit will be accepted by the Bank on behalf of the Central Government.
Recent changes: Apart from individual and joint depositors, the scheme could now be availed by charitable institutions, the Central government, the State government or any other entity owned by the Central government or the State government, the RBI said in a notification.
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