The Reserve Bank of India (RBI) recently has made few changes to the Gold Monetisation Scheme (GMS). When it comes to GMS Mobilisation, Collection & Testing Agent (GMCTA), the jewellers or refiners certified as Collection and Purity Testing Centres (CPTCs) by the Bureau of Indian Standards (BIS) have to meet additional eligibility conditions as per IBA and be recognised as GMCTA by designated banks.

The interest in a short-term bank deposit will be denominated and paid in Indian currency only. “Redemption of principal at maturity will, at the option of depositor, be either in Indian Rupee equivalent of the deposited gold based on the prevailing price of gold at the time of redemption, or in gold. The option shall be obtained in writing from the depositor at the time of making the deposit and shall be irrevocable,” says RBI’s notification on the same.

The premature redemption will also be in Indian rupee equivalent or gold at the discretion of the designated banks. As per the RBI, all the deposits under the scheme should be made at the CPTC/GMCTA. Also, at their own discretion, banks may accept the deposit of gold at the designated branches especially from the larger depositors.

The gold monetisation scheme which was unveiled in 2015 by the Prime Minister, aims to escort the idle gold reserves from private holding towards bringing them into the financial domain. The scheme allows depositors to earn by depositing their gold, gold coins, gold bars, and jewellery with the banks.