Reserve Bank of India (RBI) has made changes in the Gold Monetisation Scheme to make it more attractive. The revamping of the scheme is aimed at enabling people to open a hassle-free gold deposit account.
RBI said in a notification that the short-term deposits should be treated as bank’s on-balance sheet liability.
The notification said that these deposits will be made with the designated banks for a short period of 1-3 years. RBI said that now deposits will be allowed for broken periods now.
In 2015, the government launched the scheme with the objective of mobilising the gold held by households and institutions in the country.
The scheme allows bank customers to deposit their idle gold holdings for a fixed period in return for interest in the range of 2.25 per cent to 2.50 per cent.
Source: AIR