- Revamped Gold Deposit Scheme (R-GDS)
- R-GDS Eligibility Criteria
- Gold Deposit Scheme Types
- Revamped Gold Metal Loan (GML) Scheme
- Features of GMS joined GML
- Basic features of Revamped Gold Deposit Scheme (R-GDS)
Revamped Gold Deposit Scheme (R-GDS)
GMS includes the R-GDS. The Scheme is going to be out there in any respect banks. All the deposits beneath the Scheme shall be created at the CPTC (Collection and Purity Testing Centre). The deposits created beneath the Scheme can begin accruing interest from the date of conversion of gold deposited into tradable gold bars once refinement or thirty days once the receipt of gold at the CPTC or the bank’s selected branch because the case could also be, whichever is earlier. alternative options for the Scheme are:
R-GDS Eligibility Criteria
All resident Indians are eligible for the Revamped Gold Deposit Scheme. This includes:
- Individuals – individually or together (as Former or Survivor)
- HUFs (Hindu Undivided Families)
- Trusts, as well as Mutual Funds/Exchange, listed Funds registered beneath SEBI (Mutual Fund) laws and Companies)
- Proprietorship & Partnership companies
- Charitable establishments
- Central government, regime, or the other entity owned by the central government or the regime
Gold Deposit Scheme Types
There are three forms of deposits beneath GMS:
- Short Term Gold Deposit (STGD)
- Medium Term Gold Deposit (MTGD)
- Long Term Gold Deposit (LTGD)
Revamped Gold Metal Loan (GML) Scheme
The Gold Medal Loan Scheme started in the year 1998. However, it had been not a giant hit among Indians. the govt revamped the Scheme by introducing a number of its nice options in GMS. most people assume that besides substitution GDS, GMS conjointly replaced GML. however, as per the RBI’s notification, the prevailing GML Scheme can still run parallel to the GMS joined GML.
Features of GMS joined GML
- The gold mobilized beneath the Short-Term Bank Deposit (STBD) may be given to jewelers as Gold Metal Loan. The selected banks can even purchase the gold auctioned beneath the MLTGD (Medium- and Long-Term Gold Deposit)
- The jewelers can get the gold delivered physically either from the selected bank or from the refiners, depending on the placement wherever the refined gold is kept.
- The appointive banks, still because the selected banks are going to be eligible to import gold just for the redemption of the gold deposits mobilized beneath STBD.
- RBI has given the freedom to the selected banks to see the rate of interest for the GMS-linked GML.
- The tenure of the GMS-linked GML is going to be the same because of the tenure of the prevailing GML Scheme.
Basic features of Revamped Gold Deposit Scheme (R-GDS)
- This Scheme can replace the prevailing Gold Deposit Scheme, 1999. However, the deposits outstanding beneath the Gold Deposit Scheme are going to be allowed to run until maturity unless these are withdrawn by the depositors untimely as per existing directions.
- All selected banks are going to be eligible to implement the Scheme.
- The Principal on STBD and MLTGD shall be denominated in gold. However, the interest on STBD and MLTGD shall be calculated in Indian Rupees about the worth of gold at the time of deposit.
- Persons eligible to form a deposit – Resident Indians [Individuals, HUFs, proprietary & Partnership firms, Trusts as well as Mutual Funds/Exchange-listed Funds registered beneath SEBI (Mutual Fund) laws, Companies, charitable establishments, Central Government, regime or the other entity owned by Central Government or State Government will create deposits beneath the Scheme. Joint deposits of 2 or a lot of eligible depositors also are allowed beneath the Scheme and therefore the deposit in such case shall be attributable to the joint time deposit account opened within the name of such depositors. the prevailing rules concerning the joint operation of monetary fund accounts, as well as nominations, are going to apply to those gold deposits.
- Interest on deposits beneath the Scheme can begin accruing from the date of conversion of gold deposited into tradable gold bars once refinement or thirty days once the receipt of gold at the CPTC/GMCTA or the bank’s selected branch because the case could also be, whichever is earlier.
- throughout the amount commencing from the date of receipt of gold by the CPTC/GMCTA or the selected branch, because the case could also be, to the date on that interest starts accruing within the deposit, the gold accepted by the CPTC/GMCTA or the selected branch of the Bank shall be treated as an item in safe custody command by the selected bank.
- Selected banks shall inform the tally of their call to participate in the Scheme before long because the policy to implement the Scheme is approved by their Board. They shall conjointly report back to the tally the gold mobilized beneath the Scheme by all branches during a consolidated manner every month as per the format given within Annex-2.10 selected banks shall furnish the statement giving details of redemption due in the next 3 months, as per format given within the Annex-3. the data in Annex a pair of and three shall be stocked to Department of Regulation, bank of Republic of India, city by the seventh day of the month.
- Tax implications on GMS shall be as notified by the Central Government from time to time.
- The amount of gold is going to be expressed up to 3 decimals of a gram.
- All selected banks shall provide adequate substance to the Scheme through their branches, websites, and alternative channels.