Gold Monetisation Scheme: A & H Centres number increase to 46

The number of Assaying and Hallmarking Centres qualifying to act as Collection and Purity Testing Centre (CPTC) for handling gold under the Gold Monetisation Scheme has increased to 46 with addition of two more centres.
Shri Laxmi Assayers and Hallmarkings (AVK Nagar Salem) and Sri Sakthi Testing (Sullivan Street Coimbatore) on Tuesday were sent intimation that they have qualified as A & H Centres to act as CPTC, the Finance Ministry said.
It also said there are seven refineries which have been granted licence under the Gold Monetisation Scheme (GMS).
All deposits under the scheme has be made at the CPTC. Banks could also accept the deposit of gold at the designated branches, especially from the larger depositors.

The Scheme is aimed at channelising gold worth over Rs 52 lakh crore lying with households into the banking system.
Last week, Economic Affairs Secretary Shaktikanta Das had said under the Gold Monetisation Scheme more than 500 kg of gold has already mobilised and the Scheme was picking up.

India imports a staggering 1,000 tonnes of gold every year, draining out foreign exchange and putting pressure on the fiscal deficit. An estimated 20,000 tonnes of gold is lying with households and temples.
The minimum deposit is 30 grams of raw gold (bars, coins, jewellery excluding stones and other metals). There is no maximum limit for deposit under the scheme.

Meanwhile, the Government has decided that for one year from the launch of the Scheme (November 5, 2015) banks will be paid handling charges for Medium and Long Term Government Deposit (MLTGD) at a rate of 1.5 per cent and commission at the rate of 1 per cent of the rupee equivalent of the amount of gold mobilised.
Medium term deposit is for 5-7 years (interest rate 2.25 per cent) and long term period is 12-15 years (interest rate 2.5 per cent).
"Redemption of the deposit including interest accrued will be only in Indian Rupee equivalent of the value of the gold and accumulated interest as per the price of gold prevailing at the time of redemption," the RBI said.

Under the Short Term Bank Deposit (STBD) the principal and interest would be denominated in gold. Banks are free to fix the interest rates on these deposits (1-3 years).
"Redemption of principal and interest at maturity will... be either in Indian Rupee equivalent of the deposited gold and accrued interest based on the price of gold prevailing at the time of redemption, or in gold," the RBI guidelines said.