Government tweaks gold monetisation

The government launched the gold monetisation scheme on November 5 and since 900 kg of gold has been mobilised through the scheme. “Any Medium Term Deposit will be allowed to be withdrawn after 3 years and any Long Term Deposit after 5 years. These will be subject to a reduction in the interest payable,” said an official statement. 

Gold depositors have also been extended the flexibility to give their gold directly to the refiner rather than only through the Collection and Purity Testing Centres (CPTCs), a move that is aimed at attracting bulk depositors. The quantity of gold collected under the scheme will be expressed up to three decimals of a gram to give consumers better value for the gold deposited.Issues like the method of interest calculation and mechanism for taking loans against GMS deposits have also been clarified by the government. 

The Bureau of Indian Standards (BIS) has modified the licensing condition for refiners already having National Accreditation Board for Testing and Calibration Laboratories accreditation from the existing three years refining experience to one year refining experience, a move that is likely to increase the number of licensed refiners. Gold to be deposited with the CPTCs/Refineries can be of any purity. The CPTC/Refiner will test the gold and determine its purity which will be basis on which the deposit certificate will be issued.