RBI announces amendments to Gold Monetization Scheme (GMS), 2015

The Reserve Bank of India on Thursday made announcement amendments to Gold Monetization Scheme, 2015 with immediate effect. According to the latest notification,  a new subparagraph 2.2.2 (f) has been inserted to read as the ‘Interest on premature closure of the deposit in case of death of the depositor before and after the lock-in period’. The details are as under.

The amount payable to the depositor 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 for the period of deposit at the applicable rate.

B (i) Interest payable on MTCGD before lock-in period of 3 years (on the actual period for which the deposit has run) is as under:

Up to 6 months: No interest

>6 months and <1 year: Applicable rate for MTGD at the time of deposit minus 1.25%

≥1 year and <2 years: Applicable rate for MTGD at the time of deposit minus 1.00%

≥2 years and <3 years: Applicable rate for MTGD at the time of deposit minus 0.75%

B(ii) Interest payable on LTCGD before lock-in period of 5 years (actual period for which the deposit has run) is as under:

 Up to 1 year: No interest

>1 year and <2 years: Applicable rate for MTGD at the time of deposit minus 1.00%

≥2 years and <3 years: Applicable rate for MTGD at the time of deposit minus 0.75%

≥3 years and <5 years: Applicable rate for MTGD at the time of deposit minus 0.25%

B(iii) : Interest payable on MTCGD after the lock-in period of 3 years: The applicable interest rate on the actual period for which deposit has run shall be as under:

For >3years and <5 years: Applicable rate for LTGD at the time of deposit minus 0.25%

For ≥ 5 years and < 7 years: Applicable rate for LTGD at the time of deposit minus 0.125%

B(iv): After the lock-in period of 5 years of LTCGD, the applicable interest rate for the actual period for which the deposit has run shall be as under:

For >5years and <7 years: Applicable rate for MTGD at the time of deposit minus 0.125%

For ≥ 7 years and < 12 years: Applicable rate for LTGD at the time of deposit minus 0.25%

For ≥12 years and < 15 years: Applicable rate for LTGD at the time of deposit minus 0.125%

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