Gold monetisation scheme further liberalised to attract potential depositors
01 April 2016
Government has further modified the Gold Monetisation Scheme by giving the depositor the option to decide redemption of principal at maturity for the gold deposited under Medium and Long Term Government Deposits (MLTGD).
The redemption of principal at maturity shall be either in Indian rupee equivalent of the value of deposited gold at the time of redemption or in gold.
Where the redemption of the deposit is in gold, an administrative charge at a rate of 0.2 per cent of the notional redemption amount in rupee terms will be collected from the depositor.
However, the interest accrued on MLTGD will be calculated with reference to the value of gold in terms of rupees at the time of deposit and will be paid only in cash.
The government had launched the Gold Monetisation Scheme (GMS) on 5 November 2015. Thereafter a number of modifications have been made in the scheme to facilitate monetisation of gold by people. The scheme has been further modified on 31 March 2016.