THE GAZETTE OF INDIA
EXTRAORDINARY [PART I—SEC. 1]
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION New Delhi, the 3rd February, 2016
F. No. 20/6/2015-FT(Pt.-7).—The Central Government, with a view to provide different options to the people to monetize the privately held stock of the gold, hereby notifies the ‘ Gold Monetisation Scheme-2015 ’ comprising the ‘Revamped Gold Deposit Scheme’ and the ‘Revamped Gold Metal Loan Scheme’, which are hereby linked together as announced in the Union Budget 2015-16 and accordingly, the Provisions contained in the Gold Deposit Scheme 1999 and the Gold Metal Loan Scheme-1998 shall be applicable to Gold Monetisation Scheme-2015, subject to amendments from time to time.
1. Short title and commencement –
(1) This scheme shall be called the Gold Monetisation Scheme -2015 comprising the ‘ Revamped Gold Deposit Scheme ’ and the ‘ Revamped Gold Metal Loan Scheme ’ linked together.
(2) It shall come into force from the date of launch of the Scheme.
2. Definition – In this scheme unless the context otherwise requires —
(a) “Scheme” means the Gold Monetization Scheme, 2015 and includes the Revamped Gold Deposit Scheme and the Revamped Gold Metal Loan Scheme;
(b) “Designated bank” means each Scheduled Commercial Bank which is included in the second schedule of Reserve Bank Act, 1934 and regulated under Banking Regulation Act, 1949, excluding Regional Rural Banks that decide to implement the Scheme;
(c) “Gold Deposit Account” means an account opened with a designated bank under the scheme and denominated in grams of gold;
(d) “Medium Term Government Deposit” means the deposit of gold made under the Gold Monetisation Scheme with a designated bank in the account of the Central Government for a medium term period of five to seven years or for such period as may be decided from time to time by the Central Government;
(e) “Long Term Government Deposit” means the deposit of gold made under the Gold Monetisation Scheme with a designated bank in the account of the Central Government for a long term period of twelve to fifteen years or for such period as may be decided from time to time by the Central Government;
(f) “Refiners” means the refiners licensed by Bureau of Indian Standards and notified by the Central Government for the purpose of handling gold deposited and redeemed under Gold Monetisation Scheme;
(g) “Collection and Purity Testing Centre” means the collection and assaying centres certified by the Bureau of Indian Standards and notified by the Central Government for the purpose of handling gold deposited and redeemed under Gold Monetisation Scheme;
(h) “Short Term Bank Deposit” means the deposit of gold made under the Gold Monetisation Scheme with a designated bank for a short term period of one to three years.
3. Who can operate the scheme – All designated banks will be eligible to implement the Scheme.
4. Who are eligible to make a deposit –
(1) Resident Indians including Individuals, Hindu Undivided Families, Trusts including Mutual Funds or Exchange Traded Funds which are registered under the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996, charitable institutions, Firms and Companies, may make deposits under the scheme.
(2) Joint deposits of two or more eligible depositors may be made under the scheme and the deposit in such case shall be credited to the joint deposit account opened in the name of such depositors.
5. Collection, Purity Verification and Deposit of Gold under the Revamped Gold Deposit Scheme –
(1) Assaying and Hallmarking Centres which meet the criteria as specified by the Bureau of Indian Standards shall act as Collection and Purity Testing Centres for purity of gold for the purpose of this scheme.
(2) The minimum quantity of gold that a customer may deposit shall be 30 grams and the Gold may be in the form of bullion or jewellery.
6. Gold Savings Account – A Gold Savings Account shall be opened by customers at any time, with Know Your Customer norms, as applicable and such account shall be denominated in grams of gold.
7. Transfer of Gold to the Refiners –
(1) The Collection and purity testing centres shall send the gold to the refiners and the refiners shall keep the gold in their ware-houses, unless the banks prefer to hold it themselves.
(2) For the services provided by the refiners, they shall be paid a fee by the banks, as decided by them, mutually and the customer shall not be charged.
8. Legal Agreement – The banks may enter into a Legal Agreement (tripartite/ bipartitie) with refiners and Collection and Purity Testing Centres, that are selected by them to be their partners in the scheme. 9. Tenure: The deposits under the revamped scheme can be made for a short-term period of one to three years, a medium-term period of five to seven years and a long-term period of twelve to fifteen years (or as decided from time to time), and breaking of lock-in period shall be allowed in any of the options in the same manner as fixed deposit and a penalty on premature redemption (including part withdrawal) may be imposed.
10. Interest rate –
(1) The amount of interest rate payable for deposits made for the short-term period shall be decided by the banks on the basis of the prevailing international lease rates, other costs and market conditions and shall be denominated in grams of gold.
(2) For the medium and long-term deposits, the rate of interest (and fees to be paid to the bank for their services) shall be decided by the government from time to time and the interest rate for the medium and long-term deposits shall be denominated and payable in rupees, based on the value of gold deposited.
11. Redemption –
(1) For short-term deposits, the customer shall have the option of redemption, for the principal deposit and interest earned, either in cash or in gold, which shall have to be exercised at the time of making the deposit.
(2) In case the customer intends to change the option, it shall be allowed at the bank’s discretion.
(3) For medium and long-term deposits, redemption shall be only in cash, in rupees equivalent of the weight of the deposited gold at the prices prevailing at the time of redemption.
12. Utilization – The deposited gold shall be utilized in the following manner, namely:-
(1) Under Medium and Long-Term Deposit:
(a) Auctioning: The gold deposited may be auctioned by Reserve Bank of India or Metals and Minerals Trading Corporation or any other authorized agency by the Government, at the earliest and amount realized will be used by Government of India in lieu of government borrowing.
(b) Replenishment of Reserve Bank India’s Gold Reserves: The deposited gold may be credited to Reserve Bank India’s gold reserves.
(c) Coins: Banks may provide the mobilized gold to Minerals and Metals Trading Corporation for minting the Indian Gold Coins.
(d) Lending to jewellers: Banks may lend to jewellers under the Gold Metal Loan Scheme.
(2) Under Short-Term Deposit:
(a) Coins: Banks may provide the mobilized gold to Metals and Minerals Trading Corporation for minting the Indian Gold Coins.
(b) Lending to jewellers: Banks may lend to jewellers under the Gold Metal Loan Scheme.
13. Tax Exemption – Tax exemptions, same as those available under Gold Deposit Scheme would be made available to the customers, in the Gold Monetisation Scheme-2015, as applicable.
14. Gold Reserve Fund – The difference between the current borrowing cost for the Government and the interest rate paid by the Government under the medium or long term deposit shall be credited to the Gold Reserve Fund which shall be maintained by Reserve Bank of India on behalf of government.
15. Period of the Scheme – The scheme shall remain in operation until further notice.
Dr. SAURABH GARG, Jt. Secy.