RBI tweaks Gold Monetisation Scheme

• The Reserve Bank of India (RBI) has amended the gold monetisation scheme regulations relating to the eligibility criteria for making deposits.

• A notification says the Gold Monetisation Scheme 2015 (GMS) has been amended immediate effect.

Key highlights of the amended regulations

• “Persons eligible to make a deposit – resident Indians (individuals, HUFs, proprietorship and partnership firms, trusts including mutual funds/exchange-traded funds registered under the Sebi (mutual fund) regulations, companies, charitable institutions, the central government, state governments or any other entity owned by the central government or state governments) can make a deposits under the scheme,” according to the notification.

• The amended regulations allow joint deposits by two or more eligible depositors under the gold monetisation scheme.

• The deposit in such cases shall be credited to the joint deposit account in the name of the depositors.

• The existing rules regarding the joint operation of bank deposit accounts including nominations will be applicable to these gold deposits,” the notification said.

• This is the second set of amendments to the gold monetisation scheme regulations.

• The RBI tweaked regulations in June last year to make it more lucrative.

• The short term deposits shall be treated as banks’ on-balance sheet liability.

• According to the amendments made then, these deposits can be made with the designated banks for a short period of 1-3 years (with a facility of rollover).

• The deposits can also be allowed for broken periods like one year and three months and two years and four months five days,” the RBI notification then said.

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