**Summary:**
This policy update, issued by the Reserve Bank of India (RBI) on August 16, 2019, pertains to amendments made to the Gold Monetization Scheme (GMS), 2015. The amendments, enacted under Section 35A of the Banking Regulation Act, 1949, and detailed in RBI Master Direction No. DBR.IBD.BC.No.1323/67.001/2019-20, modify Reserve Bank of India Master Direction No.DBR.IBD.No.4523/67.003/2015-16 dated October 22, 2015, with immediate effect.
The key changes are as follows:
1. **Gold Deposit Locations:** While deposits under the GMS should primarily be made at Collection and Purity Testing Centres (CPTCs), banks now have the discretion to accept gold deposits at designated branches, especially from larger depositors. Banks are instructed to identify at least one branch per State/Union Territory where they operate to accept deposits under the scheme. Banks can also allow depositors to deposit gold directly with refiners possessing final assaying facilities, enabling the issuance of deposit receipts for standard gold of 995 fineness.
2. **Publicity:** All designated banks are now required to promote the GMS through their branch networks, websites, and other communication channels.
The updated Reserve Bank of India Master Direction No.DBR.IBD.No.4523/67.003/2015-16 dated October 22, 2015, on Gold Monetization Scheme, 2015 now incorporates these amendments.
For further information, contact Saurav Sinha, Chief General Manager-in-Charge, Department of Banking Regulation, Reserve Bank of India, Central Office, Mumbai – 400 001.
Key Entities Referenced
Reserve Bank of India: The central bank of India and the issuer of this notification.
Banking Regulation Act, 1949: The Act under which the Reserve Bank of India is exercising its powers.
Gold Monetisation Scheme, 2015: The scheme that is being amended by this notification.
Master Direction No.DBR.IBD.No.4523.67.003201516: The Master Direction related to the Gold Monetization Scheme being updated.
CPTC: Entity where deposits under the Gold Monetisation Scheme shall be made.
Scheduled Commercial Banks: The entities to whom this notification is addressed (excluding Regional Rural Banks).
Mumbai, Maharashtra: Location of the Central Office of the Reserve Bank of India.
Union Territory: Areas where banks should identify at least one branch to accept deposits under the Gold Monetization Scheme
RESERVE BANK OF INDIA
Department of Banking Regulation
Central Office
Mumbai-400 001
RBI/2019-20/43
DBR.IBD.BC.No.13/23.67.001/2019-20 August 16, 2019
All Scheduled Commercial Banks (excluding Regional Rural Banks)
Dear Sir/Madam
Gold Monetisation Scheme, 2015
In exercise of the powers conferred on the Reserve Bank of India under Section 35A
of the Banking Regulation Act, 1949, the RBI makes the following amendments in
the Reserve Bank of India (Gold Monetization Scheme, 2015) Master Direction
No.DBR.IBD.No.45/23.67.003/2015-16 dated October 22, 2015, with immediate
effect.
1. The existing sub-paragraph 2.1.1 (v) shall be amended to read as follows:
“All deposits under the scheme shall be made at the CPTC.
Provided that, at their discretion, banks may accept the deposit of gold at the
designated branches, especially from the larger depositors. Banks may identify at
least one branch in a State/Union Territory where they have presence to accept the
deposits under the Scheme.
Provided further that banks may, at their discretion, 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.”
2. The new sub-paragraph 2.1.1 (xii) shall be inserted to read as follows:
“All designated banks shall give adequate publicity to the Scheme through their
branches, websites and other channels.”
3. The Reserve Bank of India Master Direction No.DBR.IBD.No.45/23.67.003/2015-
16 dated October 22, 2015 on Gold Monetization Scheme, 2015 has been updated
incorporating the above changes.
Yours faithfully
(Saurav Sinha)
Chief General Manager-in-Charge