RBI/2017-18/192
DBR.IBD.BC.109/23.67.001/2017-18
June
7, 2018
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
2.2.1 (ii) shall be amended to read as follows:
“The short term deposits shall
be treated as bank’s on-balance sheet liability. These deposits will be
made with the designated banks for a short period of 1-3 years (with a
facility of roll over). Deposits can also be allowed for broken periods
(e.g. 1 year 3 months; 2 years 4 months 5 days; etc.). The rate of interest
payable in the case of deposits for maturities with broken periods shall be
calculated as the sum of interest for the completed year plus interest for
the number of remaining days at the rate of D/360*ARI”
Where, ARI= Annual Rate of
Interest
D= Number of days
2. The existing sub-paragraph
2.2.2 (iv) shall be amended to read as follows:
“(iv) Other features of the
Medium Term Government Deposit (MTGD) shall be as under:
(a) Maturity
The Medium Term Government Deposit
(MTGD) can be made for 5-7 years and Long Term Government Deposit (LTGD)
for 12-15 years or for such period as may be decided by the Central
Government from time to time. Deposits can also be allowed for broken
periods (e.g. 5 years 7 months; 13 years 4 months 15 days; etc.).
(b) Rate of interest:
• The rate of interest on such
deposits will be decided by Central Government and will be notified by
Reserve Bank of India from time to time. The current rate of interest as
notified by the Central Government are as under:
(i) On medium term deposit –
2.25% p.a.
(ii) On long term deposit –
2.50% p.a.
• The rate of interest payable
in the case of deposits for maturities with broken periods shall be
calculated as the sum of interest for the complete year plus interest for
the number of remaining days at the rate of D/360*ARI
Where, ARI= Annual Rate of
Interest
D= Number of days
(c) The periodicity of interest
payment
The periodicity of interest
payment on these deposits is annual and shall be paid on 31st March every
year. A depositor will have an option to receive payment of simple interest
annually or cumulative interest at the time of maturity, in which case it
will be compounded annually. This option shall be exercised at the time of
deposit.
(d) Minimum lock-in period
A Medium Term Government Deposit
(MTGD) is allowed to be withdrawn any time after 3 years and a Long Term
Government Deposit (LTGD) after 5 years.
(e) Interest on premature
withdrawal
The amount payable to the
depositor on premature withdrawal after lock-in period 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 at the time of deposit as under.”
Type
of deposit
|
Lock-in
period
(years)
|
Actual
period for which the deposit has run (years)
|
|
|
>3 and < 5
|
=5 and < 7
|
MTGD
|
3
|
Applicable rate for MTGD at the time of deposit -
0.375%
|
Applicable rate for MTGD at the time of deposit -
0.25%
|
Type
of deposit
|
Lock-in
period (years)
|
Actual
period for which the deposit has run (years)
|
|
|
>5 and < 7
|
= 7 and < 12
|
=12 and < 15
|
LTGD
|
5
|
Applicable rate for MTGD at the time of deposit -
0.25%
|
Applicable rate for LTGD at the time of deposit -
0.375%
|
Applicable rate for LTGD at the time of deposit -
0.25%
|
3. The existing sub-paragraph
2.2.2 (v) shall be amended as under:
“In the case of MLTGD, the
redemption of principal at maturity shall, at the option of the depositor,
be either in Indian Rupee equivalent of the value of deposited gold at the
time of redemption, or in gold. However, any pre-mature redemption of MLTGD
shall be only in INR. Where the redemption of the deposit is in gold, an
administrative charge at a rate of 0.2% of the notional redemption amount
in terms of INR shall be collected from the depositor. However, the
interest accrued on MLTGD shall be calculated with reference to the value
of gold in terms of Indian Rupees at the time of deposit and will be paid
only in cash.”
4. The existing sub-paragraph
2.2.2 (ix) shall be amended as under:
“Central Government has decided
that with effect from November 5, 2016, designated banks will be paid
handling charges (including gold purity testing, refining, transportation,
storage and any other relevant costs) for MLTGD at a flat rate of 1.5% and
commission at the rate of 1% of the rupee equivalent of the amount of gold
mobilized under the scheme until further notice.”
5. 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
|