Punjab National Bank (PNB) Gold Deposit Scheme

Punjab National Bank is one of the public sector banks that offers Revamped-Gold Deposit Scheme to its customers. The scheme is a part of Gold Monetisation Scheme (GMS), which in nature is a term deposit in gold. The scheme was introduced in the year 2015 by the government with an aim to mobilize gold and facilitate its use for better purpose and in future help in reducing India’s dependency on gold imports. Customers can deposit their unused gold under the scheme and earn interest on it.

There are 3 types of deposits under this scheme:

• Short Term Gold Deposit (STGD)
• Medium Term Gold Deposit (MTGD)
• Long Term Gold Deposit (LTGD)

Benefits of PNB Bank Gold Deposit Scheme (R-GDS)

Following are the benefits of Revamped Gold Deposit Scheme (R-GDS):

• Indian households and other institutions have a large amount of unused gold. The scheme will help in mobilizing this idle gold and use it for productive purposes.
• Physical gold does not incur an income, in fact, when stored in bank lockers; it costs you in terms of locker charges. The scheme offers people an opportunity to earn interest on their gold deposits.
• The income you earn on your gold deposits is absolutely tax-free.
• The scheme also offers gold depositors the flexibility on redemption. At the time of redemption, you can take either cash or gold but the references must be mentioned at the time of gold deposit.

Features of PNB Bank Revamped Gold Deposit Scheme (R-GDS)

• All residents of India are eligible for the scheme including individuals, HUFs, proprietorship and partnership firms, trusts, etc. Joint deposits of two or more eligible depositors are also allowed.
• Regarding customer identification, the rules and regulations applicable to other deposit accounts will also be applicable to the Gold Deposit Account. All KYC (Know Your Customer) norms as prescribed by the RBI (Reserve Bank of India) will be obeyed.
• The minimum gold deposit required is 30 grams. The gold should be raw and can be deposited in the form of gold coins, gold bars, and gold jewellery. However, studded stones and other metals will not be acceptable.
• The tenure of STGD is 1-3 years, MTGD is 5-7 years and LTGD is 12-15 years.
• The interest rate for MTGD and LTGD is set by the Central Government. The current rate of interest as notified by the government on MTGD is 2.25% and on LTGD is 2.50%. The applicable interest rate for STGD is:
• 1 year- 0.50% p.a
• 2 year- 0.60% p.a
• 3 year- 0.75% p.a
• The interest on both LTGD and LTGD will be calculated in Indian Rupees with reference to the value of gold at the time of deposit.
• Your gold deposits will start accruing interest from the date your gold deposits convert into tradable gold bars post-refinement or 30 days after you receive a receipt at the CPTC (Collection and Purity Testing Centre)or the bank’s designated branch.
• The minimum lock-in period for MTGD and LTGD as mentioned by the RBI are 3 years and 5 years, respectively.