BANGALORE: Indians have a long standing admiration and relationship with the precious metal of gold. Considering the love they have, the government of India has over the time launched many schemes related to the metal. This time, the Gold Monetisation Scheme to be launched soon by the Prime Minister Narendra Modi is the talk of the town.

This scheme focuses on capitalizing on this fondness the nation has for the metal. Banks have been instructed and directed by the central bank for the implementation of this scheme. The budget 2015-16 included the mention of this scheme and was officially announced on September 15.

The scheme looks forward to monetise gold worth close to 60 lakh cr which is owned by households and institutions.

We compiled a quick look on the information and features of this scheme. The following are the things you need to know about this Gold Monetisation Scheme, reports DNA.

1) The Gold Monetisation Scheme 2015 is a replacement of the Gold Deposit Scheme of 1999. But this doesn’t pose any problem for the people who have their gold deposited in the previous scheme. Te gold deposited will run its maturity provided it is not withdrawn from the scheme before the mature date.

2) Who can access this scheme?

Resident of India (citizens, HUF, Trusts, Mutual Funds/Exchange Traded Funds under SEBI Regulations and Companies) can access the scheme for gold deposit.

3) Upper/Lower Limit For deposit:

The minimum limit for deposit under this scheme is 30 grams of 995 fineness in raw gold which could be in the form of coins, bars; jewelry however should have stones and amalgamation of other metals.  There is no maximum limit for deposit.  

4) Who will accept the gold?

The operation of accepting the deposit and Purity Testing Centres (CPTC) certified by the Bureau of Indian Standards (BIS) and informed by the Central government under the scheme will take the deposit. A deposit certificate will be issued by the banks once gold of 995 fineness is deposited.    

5) Term:

The deposits can be made for short term of 1-3 years, medium term deposit of 5-7 years and long term of 12-15 years.  Designated banks will take in the deposits only for short-term and medium-term deposits whereas long term will be received on the behalf of the government.

6) Interest payout:

Interest on deposits under the scheme will start accruing from the date of conversion of The day the gold deposited is converted into tradable gold bars followed by refinement or 30 days later the receipt of gold at the CPTC or the bank’s designated branch, or whichever makes its faster, will mark the beginning of the process and the interest will start accruing on that given day.

7) KYC:

The access to this scheme will be available after the banks have carried out the KYC norms and depositors have to submit proper identification documents.

8) Complaints:

Depositor grievances regarding the issues of receipts, inappropriate deposit certificates, redemption of deposits will be address at the customer complaint process of designated branch of the bank. It will then be handled by the Reserve Bank’s Banking Ombudsman.

9) Premature withdrawal:

A provision for premature withdrawal will be determined by the individual banks which will be subject to a minimum lock-in period and penalty.