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Immediately pay interest on gold under GMS: RBI to banks

Gold can be deposited under GMS with a designated bank in the account of the Central govt

Press Trust of India  |  Mumbai 

New Delhi: Union Minister for Finance and Corporate Affairs, Arun Jaitley striking the Gong at the launch of the commodity options on gold futures, in New Delhi on Tuesday. Photo: PTI
New Delhi: Union Minister for Finance and Corporate Affairs, Arun Jaitley striking the Gong at the launch of the commodity options on gold futures, in New Delhi on Tuesday. Photo: PTI

The on Tuesday asked banks to "immediately" pay interest due on the gold deposited by individuals and institution under the (GMS) launched in 2015.

The government had launched the scheme to curb imports of gold, which has a bearing on current account deficit.


Gold can be deposited under the GMS with a designated bank in the account of the for a medium term period of 5-7 years or a long term period of 12-15 years.

In a notification, the RBI said reimbursement of payments made by banks, relating to Medium and Long Term Government Deposit (MLTGD), will be made by its (CAS), Nagpur.

"Accordingly, banks are advised to pay immediately the interest amount already due to the depositors and to take note that, in future, payment of interest to the depositors is to be made on the due dates," said the notification.

After making payments, the banks may raise claim to government through RBI, the notification added.

The rate of interest on gold deposit is decided by government and notified by of India from time to time.

The annual rate of interest on medium term deposit is 2.25 per cent and on long term deposit it is 2.50 per cent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, October 17 2017. 20:05 IST
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