In the year 2015, the government introduced the Gold Monetisation Scheme (GMS) in an effort to mobilize gold and make it to productive use. In the long run, this practice might even reduce the nation’s reliance on gold imports, thus, saving a lot of capital. GMS includes the revamped versions of two old gold schemes, Gold Deposit Scheme (GDS) (1999) and the Gold Metal Loan (GML) (1998) Scheme.
The Revamped Gold Deposit Scheme has 3 types:
- Short Term Gold Deposit (STGD)
- Medium Term Gold Deposit (MTGD)
- Long Term Gold Deposit (LTGD)
All Indian Residents are eligible to apply for this scheme including Hindu Undivided Families (HUF) companies and trusts.
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Benefits of ICICI Bank Revamped Gold Deposit Scheme (R-GDS)
The benefits of opening the gold deposit account with the bank are as follows:
- You get an opportunity to earn interest on your gold deposit.
- The gold in your locker appreciates with time but does not incur returns or income instead you pay locker charges on the same. The gold stored in your Gold Deposit Account will help you earn interest on it.
- The gold you deposit with the ICICI Bank will securely maintain your gold.
- The interest you earn on your gold deposit is exempt from capital gain tax, wealth tax, and income tax. Even when the value of gold appreciates, no tax will be levied.
- If you decide to open the Gold Deposit Account with ICICI Bank, you will get the right worth and value of your gold. The bank tie-up with well-known Refiners who will check your gold’s purity in front of you.
Features of ICICI Bank Revamped Gold Deposit Scheme (R-GDS)
- Before you open Gold Deposit Account with ICICI Bank, you must have savings or current account with the bank.
- The rules applicable for opening the Gold Deposit Account will be the same as the rules applicable to any other deposit account.
- Currently, ICICI Bank does not offer STBD to its customers.
- The minimum amount of gold required to deposit for the Gold Deposit Scheme is 30 grams.
- The bank accepts raw gold such as gold bars, gold coins, and gold jewellery but excludes stones and other metals.
- There is no maximum limit on the amount of gold that can be deposited under the scheme.
- For both MTGD and LTGS, the deposits are held by the bank on behalf of the Central Government.
- The interest rate applicable on Gold Deposit Account are as follows:
- MTGD: 2.25% p.a.
- LTGD: 2.50% p.a.
- The interest on your gold deposits will be paid annually in 31st March or on the date of maturity, whichever comes first.
- The tenure of MTGD and LTGD are 5-7 years and 12-15 years, respectively.
The lock-in period for MTGD and LTGD are 3 years and 5 years, respectively.
How to apply for gold deposite scheme
Before you open Gold Deposit Account with ICICI Bank, you must have savings or current account with the bank. The rules applicable for opening the account will be the same as the rules applicable to any other deposit account. The rules applicable for opening the Gold Deposit Account will be the same as the rules applicable to any other deposit account. However, the customers should know that the minimum amount of gold required to deposit for this scheme is 30 grams.