In 1999, the government had launched the Gold Deposit Scheme (GDS), which at that time could not gain much success. But a few years later in the year 2015, the scheme was reintroduced as Revamped Gold Deposit Scheme (R-GDS) along with another gold scheme, Gold Metal Loan Scheme, under the Gold Monetisation Scheme (GMS). The aim of the Revamped Gold Deposit Scheme (R-GDS) is to:
- Monetize gold held by household and other institutions
- Use the idle gold for productive purposes
- Reduce India’s dependency on gold imports
- Allow people to earn interest on their gold deposits
The scheme is available at the State Bank of India (SBI). Following are its benefits:
- Mobilizes idle gold
- Allows people to earn interest on their gold deposits
- Gives you tax benefits
- Gives you flexibility on redemption
Features of SBI Revamped Gold Deposit Scheme (R-GDS)
- All resident Indians are eligible for the scheme.
- There are 3 types of deposits under GMS, Short Term Gold Deposit (STGD), Medium Term Gold Deposit (MTGD) and Long Term Gold Deposit (LTGD).
- The tenure for the deposits are as follows:
- STGD: 1-3 years
- MTGD: 5-7 years
- LTGD: 12-15 years
- The interest rate applicable are as follows:
|1 year: 0.50% p.a.
Less than 1 yr & up to 2 yrs: 0.55% p.a.
Less than 2 yrs & up to 3 yrs: 0.60% p.a.
|2.25% p.a.||2.50% p.a.|
- The minimum deposit amount required for the scheme is 30 grams of gold in the form of bars, coins, and jewellery (excluding stones and other metals).
- There is no limit for the maximum amount of gold that you can deposit.
- The gold deposits under LTGD and MTGD will be accepted by the bank on behalf of the Central Government. Whereas the gold deposits under STGD will be held by the bank and be recorded in the bank’s books.
The minimum lock-in periods for MTGD and LTGD are 3 and 5 years, respectively. And the lock-in-period for STGD is at the bank’s discretion.