Banks Free to Fix Interest Rates on Gold Deposit Scheme: RBI
Oct 23, 2015: Now banks can freeze their own rate of interest on gold deposits. According to RBI, banks are free to fix the interest rates. Reserve Bank of India has issued guidelines for the Gold Monetization Scheme.
The Gold Monetization Scheme will be officially launched by Mr. Narendra Modi on November 5.
There is an estimated 20,000 tonnes of idle gold with institutions and household in the country. The Gold Monetizing Scheme will help to mobilize this idle gold. As per the RBI regulation, banks can set their own interest rates on gold deposits.
"Redemption of principal and interest at maturity will, at the security of the depositor be either in Indian Rupees comparable of the deposited gold and accrued interest based on the price of gold predominating at the time of redemption, or in gold. " it said.
The minimum gold deposit should be raw gold (coins, jewelry, bars, etc.). There is no limit on maximum deposit.