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The Gold Monetization scheme is almost like having a gold savings account. While you keep your gold at home or in a bank locker, the security of physical gold is always at risk. Additionally, a bank locker also incurs a certain maintenance fee which is an unnecessary expense. In case of a gold monetization scheme account, you can not only keep it safely, but also earn a certain interest as the price of the metal rises up. Another thing to remember is that gold is a very valuable commodity in the Indian culture. Most citizens prefer to keep it in possession. To reduce the risk of robbery and to earn interest for the welfare of the nation, the government came up with schemes so that people can make good use of their purchase. The Gold monetization scheme was introduced quite recently in the fiscal year 2015-2016 as one of the initiatives to achieve the abovementioned purposes. However, if you are skeptical about investing in this scheme, then here are some more crucial things that you should know about it:
There are various different features of the gold monetization scheme. The biggest benefits are:
Have a flexible option for deposits : One of the best features of a gold monetization scheme is that you can deposit your gold in any form which is convenient for you. The gold can be deposited in the form of bars and coins, or even jewelry. However, if your gold jewelry is full of gemstones, then it cannot be deposited under the gold monetization scheme.
You can also see flexibility when it comes to deposit quantity : Unlike many other schemes, there is no maximum limit of deposit for this particular scheme. However, the minimum deposit that you will require is 30 grams of 995 fineness gold.
Are banks supposed to get an RBI approval to participate in the Gold Monetisation Scheme?
While the answer for this question is no, a bank should submit the details of implementation to RBI. This includes the names of the refiners and the CPTCs with whom they have made a tripartite agreement. Banks are also required to give a report on the gold that is mobilized under this particular scheme by all the branches in a format that is prescribed by the RBI.
Can a deposit be made under GMS for a tenure of 4 years or 8 years?
A Short-term deposit made for three years, which can be rolled over to 4 years. However, this is not valid for long-term and medium-term deposits.
Is it compulsory to complete the KYC for potential customers of GMS?
This needs to be done, unless the depositor is already KYC compliant with the bank.
If the purity determined by CPTC is not acceptable by a customer, then can they get back their jewelry?
Yes, but this decision needs to be taken before fire assaying begins. After the XRF test, the consumer would get back his gold, but only in a post melted
When will the refined amount of gold deposited be credited? Can it be credit once the customer produces the certificate of deposit?
The refined amount of gold will only be credited once an intimation has been made from the CPTC side regarding the deposit.