MUMBAI (Scrap Register): Reserve Bank of India (RBI) has liberalised the Gold-monetisation scheme (GMS), permitting charitable institutions, the Centre, states, and government entities to deposit the precious metal.
Experts said this was likely to attract huge quantities of Gold over the coming months. Some claimed this was a move to bring out unaccounted Gold ahead of the Lok Sabha elections, slated in April-May.
The aim of the scheme was to mobilise idle Gold lying with households and temples into the system, and consequently, reduce imports.
Experts said allowing charitable institutions to take advantage of the GMS were also a good idea. This would allow those holding unaccounted Gold to deposit it, without disclosing their identity.
Under the scheme, a depositor gets 2.25 per cent interest annually for a short-term deposit of one year to three years. Medium- and long-term deposits get 2.5 per cent interest rate.
A depositor has to give Gold to a collection centre, which are also hallmarking centres. These issue certificates of purity after melting the Gold, which is sent to refineries for converting into bars. Banks issue deposit receipts after collecting purity certificates from depositors.