**Summary:**
This circular, issued by the Reserve Bank of India (RBI) on January 9, 2019, under Section 35A of the Banking Regulation Act, 1949, announces amendments to the Gold Monetization Scheme (GMS), 2015, outlined in Master Direction No. DBR.IBD.No.4523.67.003/2015-16 dated October 22, 2015. The key change expands the eligibility criteria for depositors under the GMS. Eligible depositors now include: Resident Indians (Individuals, HUFs, Proprietorships, Partnership firms, and 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. Joint deposits by two or more eligible depositors are permitted, with standard bank deposit account rules for joint operation and nominations applying to these gold deposits. The updated Master Direction on the Gold Monetization Scheme, 2015, reflecting these changes, is now in effect. The circular is addressed to all Scheduled Commercial Banks excluding RRBs. Contact person for inquiries is Prakash Baliarsingh, Chief General Manager. The reference number for this circular is RBI/2018-19/104 DBR.IBD.BC.1923/67.001/2018-19.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
Banking Regulation Act, 1949: An act of the Indian Parliament that empowers the Reserve Bank of India to regulate, control, and inspect banks in India.
Gold Monetization Scheme, 2015: A scheme by the Reserve Bank of India to mobilize gold held by Indian households and institutions.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule of the Reserve Bank of India Act, 1934.
Resident Indians: Individuals residing in India as defined under FEMA act.
SEBI: Securities and Exchange Board of India, the regulator of the securities market in India.
Mumbai, Maharashtra: City in India where the central office of the Reserve Bank of India is located.
Prakash Baliarsingh: Chief General Manager at Reserve Bank of India.
RESERVE BANK OF INDIA
Department of Banking Regulation
Central Office
Mumbai-400 001
RBI/2018-19/104
DBR.IBD.BC.19/23.67.001/2018-19 January 9, 2019
All Scheduled Commercial Banks (excluding RRBs)
Dear Sir/Madam
Gold Monetization 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 (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, Companies,
charitable institutions, Central Government, State Government or any other
entity owned by Central Government or State Government] can make deposits
under the scheme. Joint deposits of two or more eligible depositors are also
allowed under the scheme and the deposit in such case shall be credited to the
joint deposit account opened in the name of such depositors. The existing rules
regarding joint operation of bank deposit accounts including nominations will be
applicable to these gold deposits.”
2. 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
(Prakash Baliarsingh)
Chief General Manager