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(i)
The existing sub-paragraph 2.1.1 (iii) shall be amended to read as
follows:
The principal and interest on STBD shall be
denominated in gold. In the case of MLTGD, the principal will be denominated in
gold, but interest shall be calculated in Indian Rupees with reference to the
value of gold at the time of the deposit.
(ii)
The existing sub-paragraph 2.1.1 (iv) shall be amended to read as follows:
Persons eligible to make a deposit - Resident
Indians (Individuals, HUFs, Proprietorship & Partnership firms, Trusts,
including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual
Fund) Regulations and Companies) can make deposits under the scheme. Joint
deposits are also allowed and the deposit shall be credited to the joint
account in the name of such depositors. The existing rules regarding operation
of bank deposit accounts, including nominations shall apply to these gold
deposits.
(iii) The existing sub-paragraph 2.1.1 (v)
shall be amended as below:
All
deposits under the scheme shall be made at the CPTC. Banks may accept the
deposit of gold at the designated branches, especially from the larger
depositors.
Banks
may also allow the depositors to deposit their gold directly with the refiners
that have facilities to carry out final assaying and to issue the deposit
receipts of the standard gold of 995 fineness to the depositor.
(iv) The existing sub-paragraph 2.1.1 (ix) shall
be amended to read as under:
Designated banks shall inform the RBI of
their decision to participate in the Scheme as soon as the policy to implement
the Scheme is approved by their Board. They shall also report to the RBI the
gold mobilized under the Scheme by all branches in a consolidated manner on a
monthly basis.
(v)
A para No.2.1.1 (x) shall be included as below:
Tax
implications on GMS shall be as notified by the Central Government.
(vi) A para No.2.1.1 (xi) shall be included as below:
The
quantity of gold will be expressed up to three decimals of a gram.
(vii)
The
existing sub-paragraph 2.2.2 (iv) shall be amended to read as under:
(a)
The
Medium Term Government Deposit (MTGD) can be made for 5-7 years and Long Term
Government Deposit (LTGD) for 12-15 years or for such period as may be decided
by the Central Government.
(b)
The
rate of interest will be decided by Central Government and notified by Reserve
Bank of India. The current rate of interest are as under:
(ii) On
long term deposit – 2.50% p.a.
(c)
The
designated banks may allow whole or part premature withdrawal of the deposit
subject to minimum lock-in period and penalties as under:
(i) Minimum lock-in period
A
Medium Term Government Deposit (MTGD) is allowed to be withdrawn any time after
3 years and a Long Term Government Deposit (LTGD) after 5 years.
(ii) Penalty on premature withdrawal
The
amount payable to the depositor on premature withdrawal shall be calculated as
a sum of (A) and (B), as indicated below:
(A)
Actual
market value of the gold deposit on the day of withdrawal.
(B)
Interest
payable on the value of the gold at the time of deposit as under.
|
Type of deposit
|
Lock in period
|
Actual period for which the deposit has
run (yrs)
|
|
|
|
|
>3 and < 5
|
≥5 and < 7
|
|
MTGD
|
3 yrs
|
Applicable rate on MTGD at the time of deposit -0.375%
|
Applicable rate on MTDG at the time of deposit -0.25%
|
|
Type of deposit
|
Lock in period
|
Actual period for which the deposit has
run (yrs)
|
||
|
|
|
>5 and < 7
|
≥
7 and < 12
|
≥12 and < 15
|
|
LTGD
|
5 yrs
|
Applicable rate on MTGD at the time of deposit -0.25%
|
Applicable rate on LTGD at the time of deposit -0.375%
|
Applicable rate on LTDG at the time of deposit -0.25%
|
(viii)
A para No.2.2.2 (ix) shall be included as under:
Central Government has decided that for
initial period of one year, designated banks will be paid handling charges for
MLTGD at a flat rate of 1.5% and commission at the rate of 1%.
Explanation:
For the purpose of computing the charges and commission payable to banks, the
rupee equivalent of the gold deposited shall be calculated based on the price
of gold prevailing at the time of deposit.
(ix)
The existing sub-paragraph 2.4 (i) shall be amended to read as under:
The
Central Government will notify the list of BIS certified CPTC / Refiners under
the
Scheme
and shall be communicated to the banks through IBA.
(x)
A para No. 2.6 (iii) shall be included as under:
The
tripartite agreement shall have enabling provision for direct deposit of gold
with the refineries as well. In the alternate, banks shall enter into bipartite
agreements with the refiners, stating out the terms of that arrangements
besides the tripartite agreement.
Based on RBI Circular dt
21/01/16. Please visit www.rbi.org.in for any further clarification if required….. Poppy
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