Current Affairs

RBI tweaks Gold Monetisation Scheme

The Reserve Bank of India (RBI) has made changes with the Gold Monetisation Scheme (GMS) to allow charitable institutions, Central Government entities and state government entities to deposit gold under GMS.
RBI tweaks Gold Monetisation Scheme
  • Now the entities allowed to deposit gold under the scheme include Resident Indians (Individuals, HUFs, Proprietorship & Partnership firms), Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government or any other entity owned by Central Government or State Government.

Why the ambit to deposit gold under the scheme was expanded?

  • To bring out the unaccounted gold with the charitable institutions.
  • To enable the government agencies to deposit gold which they had confiscated.

About the Gold Monetisation Scheme:

  • The Gold Monetisation Scheme was launched with the tagline Earn, while you secure.
  • The scheme provides the dual benefit of, interest (denominated in gold) on the gold deposited and an option of encashing the gold at maturity.
  • All the scheduled commercial banks except the RRBs are authorised to implement the scheme.
The gold deposits can be made under 3 term deposit plans:
  1. Short term- 1 to 3 years
  2. Medium-term- 5 to 7 years
  3. Long term- 12 to 15 years
  • Short-term deposit rates are decided by the banks concerned, while the medium and long-term deposit interest rates are decided by the Central Government.
  • The minimum deposit one can make in a gold monetisation scheme is 30 grams of any purity and there is no maximum limit.
  • The capital gains from the scheme are exempted from capital gains tax, wealth tax and income tax.

Question:

Q. The Reserve Bank of India (RBI) has made changes with which scheme to allow charitable institutions, Central Government entities and state government entities to deposit gold?
a. Gold Deposit Scheme (GDS)
b. Gold Security Scheme (GSS)
c. Gold Monetisation Scheme (GMS)
d. None of the above
RBI tweaks Gold Monetisation Scheme RBI tweaks Gold Monetisation Scheme Reviewed by Inderjeet Virdi on January 13, 2019 Rating: 5

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