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Govt notifies Gold Deposit Scheme

The government has notified the Gold Deposit Scheme 1999.

The scheme seeks to help bring privately held stock of gold into circulation, reduce the country's reliance on import of gold, provide gold owners with some income, free them from the problems of storage, movement and security of the precious yellow metal.

According to the notification issued by the Ministry of Finance, the scheme will come into effect immediately. The scheme was announced by Finance Minister Yashwant Sinha while presenting the Budget 1999-2000 in Parliament.

Designated banks will operate the scheme after getting the operational details approved by the Reserve Bank of India. The gold shall be tendered by a subscriber in the form of bars, coins and gold jewellery. Every subscriber desirous of making subscription of gold under the scheme shall apply to a designated bank in such form as may be prescribed by the bank.

After the gold has been assayed, the designated bank shall accept the gold and at the option of the subscriber shall issue a gold certificate or a statement of account or a passbook to the subscriber.

Premature payment, either in the form of gold or in cash equivalent to the price of gold on the date of encashment, shall be allowed after initial lock-in period. The gold certificate shall be repaid in gold. Such repayment may also be made in rupee equivalent to the price of gold as on the date of maturity at the option of the subscriber. The option in this regard will have to be exercised in the manner prescribed by the designated bank.

The designated bank shall pay interest at such rate and at such intervals as it may decide, subject, however, to the interest rate directive on gold deposit, issued by the RBI. The nomination facility shall be available on the lines of usual rupee deposit scheme prevalent in banks.

The gold certificate shall be transferable by endorsement and delivery, an official release today said.

UNI

ALSO SEE

The Great Indian Gold Rush

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