Executive Summary:
This document outlines amendments to the Reserve Bank of India's Gold Monetization Scheme (GMS) of 2015, effective immediately. It details the interest calculations applicable on premature closure of gold deposits due to the depositor's death, and in cases of loan default against Medium and Long Term Gold Deposits (MLTGD). The amendments are made under Section 35A of the Banking Regulation Act, 1949.
Key Points / Main Content:
* **Amendment to GMS 2015:** Changes are made to the Reserve Bank of India Gold Monetization Scheme, 2015 Master Direction No.DBR.IBD.No.4523.67.003201516 dated October 22, 2015.
* **Interest on Premature Closure due to Depositor's Death (New Subparagraph 2.2.2 f):**
* The amount payable is the sum of the actual market value of the gold on the day of withdrawal (A) and the interest payable on the value of the gold for the deposit period at the applicable rate (B).
* Before the lock-in period, interest rates are specified based on the deposit type (MTGD or LTGD) and the actual deposit period, with deductions from the rate at the time of deposit.
* After the lock-in period, interest rates are specified based on the deposit type (MTGD or LTGD) and the actual deposit period, with deductions from the rate at the time of deposit.
* **Interest on Premature Closure due to Loan Default Against MLTGD (New Subparagraph 2.2.2 g):**
* The amount payable is the sum of the actual market value of the gold on the day of withdrawal (A) and the interest payable on the value of the gold for the deposit period at the applicable rate (B).
* Before the lock-in period, interest rates are specified based on the deposit type (MTGD or LTGD) and the actual deposit period, with deductions from the rate at the time of deposit.
* After the lock-in period, interest rates are specified based on the deposit type (MTGD or LTGD) and the actual deposit period, with deductions from the rate at the time of deposit.
Impact Analysis:
* **Scheduled Commercial Banks (excluding Regional Rural Banks):**
* *Impact:* Banks need to implement the new guidelines for calculating interest on premature closure of gold deposits under the specified circumstances.
* *Action Required:* Update internal policies and procedures to align with the amended GMS 2015 Master Direction, and ensure staff are trained on the new calculations.
* **Gold Depositors:**
* *Impact:* Depositors and their nominees are affected by the revised interest calculation methods in case of premature closure due to death or loan default.
* *Action Required:* Be aware of the revised interest rate structure in the event of premature closure of gold deposits under the specified circumstances.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and monetary policy.
Banking Regulation Act, 1949: An act of the Indian Parliament that regulates the banking industry in India.
Gold Monetization Scheme, 2015: A scheme introduced by the Government of India to mobilize gold held by households and institutions in the country.
Mumbai, Maharashtra: The city in India where the central office of the Reserve Bank of India is located.
Master Direction No.DBR.IBD.No.4523.67.003201516: A directive issued by the Reserve Bank of India pertaining to the Gold Monetization Scheme, 2015.
Medium Term Gold Deposit: A type of deposit under the Gold Monetization Scheme, 2015 with a lock-in period of 3 years.
Long Term Gold Deposit: A type of deposit under the Gold Monetization Scheme, 2015 with a lock-in period of 5 years.
Prakash Baliarsingh: Chief General Manager at Reserve Bank of India
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
RBI/2021-22/115
DoR.AUT.REC.62/23.67.001/2021-22 October 28, 2021
All Scheduled Commercial Banks
(excluding Regional Rural Banks)
Dear Sir/Madam
Gold Monetization Scheme (GMS), 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.
2. A new sub-paragraph 2.2.2 (f) has been inserted to read as follows:
2.2.2 (f) Interest on premature closure of the deposit in case of death of depositor
before and after lock-in period
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.
(i) Before lock-in period: The applicable interest rate shall be as under:
Actual period for which the deposit has run
Type of Lock-in
Up to 6 >6 months ≥1 year and ≥2 years and
Deposit period
months and <1 year <2 years <3 years
MTGD 3 years No Applicable rate Applicable rate Applicable rate
interest for MTGD at for MTGD at for MTGD at
the time of the time of the time of
deposit minus deposit minus deposit minus
1.25% 1.00% 0.75%
�व�नयमन �वभाग, केन्द्र�य कायार्लय, केन्द्र�य कायार्लय भवन, 12वीं/13वीं मंिजल, शह�द भगत �सघं माग,र् फ़ोटर्, मुंबई-400001, भारत.
टेल�फोन/Tel No: 022-22661602, 22601000 फैक्स/Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001, India.
Tel No: 022-22661602, 22601000 Fax No: 022-2270 5691
�हदं � आसान है, इसका प्रयोग बढ़ाइए ।Actual period for which the deposit has run
Type of Lock-in
Up to 1 >1 year and ≥2 years and ≥3 years and
Deposit period
year <2 years <3 years <5 years
LTGD 5 years No Applicable rate Applicable rate Applicable rate
interest for MTGD at for MTGD at for MTGD at
the time of the time of the time of
deposit minus deposit minus deposit minus
1.00% 0.75% 0.25%
(ii) After lock-in period: The applicable interest rate shall be as under:
Type of Lock-in Actual period for which the deposit has run
Deposit period >3 years and < 5 years ≥5 years and < 7 years
MTGD 3 years Applicable rate for MTGD Applicable rate for MTGD at the
at the time of deposit time of deposit minus 0.125%
minus 0.25%
Actual period for which the deposit has run
Type of Lock-in
>5 years and < 7 years ≥ 7 years and ≥12 years and
Deposit period
< 12 years < 15 years
LTGD 5 years Applicable rate for MTGD Applicable rate Applicable rate
at the time of deposit for LTGD at for LTGD at the
minus 0.125% the time of time of deposit
deposit minus minus 0.125%
0.25%
3. A new sub-paragraph 2.2.2 (g) has been inserted to read as follows:
2.2.2 (g) Interest on premature closure of the deposit due to default of loan taken
against MLTGD before and after lock-in period
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.
(i) Before lock-in period: The applicable interest rate shall be as under:
Actual period for which the deposit has run
Type of Lock-in
Up to 6 >6 months ≥1 year and ≥2 years and
Deposit period
months and <1 year <2 years <3 years
MTGD 3 years No Applicable rate Applicable rate Applicable rate
interest for MTGD at for MTGD at for MTGD at
the time of the time of the time of
deposit minus deposit minus deposit minus
1.375% 1.125% 0.875%
2Actual period for which the deposit has run
Type of Lock-in
Up to 1 >1 year and ≥2 years and ≥3 years and
Deposit period
year <2 years <3 years <5 years
LTGD 5 years No Applicable rate Applicable rate Applicable rate
interest for MTGD at for MTGD at for MTGD at
the time of the time of the time of
deposit minus deposit minus deposit minus
1.125% 0.875% 0.375%
(ii) After lock-in period: The applicable interest rate shall be as under:
Type of Lock-in Actual period for which the deposit has run
Deposit period >3 years and < 5 years ≥5 years and < 7 years
MTGD 3 years Applicable rate for MTGD Applicable rate for MTGD at the
at the time of deposit time of deposit minus 0.25%
minus 0.375%
Actual period for which the deposit has run
Type of Lock-in
>5 years and < 7 years ≥ 7 years and ≥12 years and
Deposit period
< 12 years < 15 years
LTGD 5 years Applicable rate for MTGD Applicable rate Applicable rate
at the time of deposit for LTGD at for LTGD at the
minus 0.25% the time of time of deposit
deposit minus minus 0.25%
0.375%
4. The Reserve Bank of India Master Direction No.DBR.IBD.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
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