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Gold Monetisation Scheme, 2015

11. Query: Can a depositor close the deposit before the minimum lock-in period? +

Response: In case of STBD, the corresponding provisions will be as determined by designated banks. In case of MTGD or LTGD deposits, premature closure before the minimum lock-in period is available in case of death of depositor or default of loan taken against MLTGD certificate. The applicable interest rates are detailed in para 2.2.2. (f) and 2.2.2. (g) of the Master Directions – Gold Monetization Scheme, 2015.

12. Query: Can a customer get back his jewellery if the purity determined by the CPTC/GMCTAs is not acceptable to him/her and he/she does not want to invest in the GMS? +

Response: The jewellery will be melted by the CPTC/GMCTAs to conduct the fire assay and the customer can then get back gold only in post-melted form. Thus, the decision regarding taking back jewellery in the original form must be taken by the customer after XRF test and before giving consent for fire-assaying.

13. Query: In what form will the depositor get back his gold at maturity? +

Response:

Sr. No.	Type of Deposit	Principal Repayment on Maturity	Interest Repayment on Maturity
i.	Short Term Bank Deposit (STBD)*	In gold or INR equivalent of the value of deposited gold at time of redemption	In INR with reference to value of gold in terms of Indian Rupees at the time of deposit.
ii.	Medium Term Government Deposit (MTGD)	In gold or INR equivalent of the value of deposited gold at time of redemption	In INR with reference to value of gold in terms of Indian Rupees at the time of deposit.
iii.	Long Term Government Deposit (LTGD)	In gold or INR equivalent of the value of deposited gold at time of redemption	In INR with reference to value of gold in terms of Indian Rupees at the time of deposit.
* with effect from April 05, 2021

14. Query: Can a bank make repayment of the partial amount of gold (less than one gram) in INR in cases where the redemption is in gold? +

Response: Suppose the principal amount is, say 302.86 grams of gold, and the customer has to be paid in gold, a bank can repay 302 grams in gold and 0.86 grams in equivalent amount of INR. It may be noted that the interest on deposit shall be calculated in INR on the value of gold at the time of deposit.

15. Query: Is it compulsory for banks to participate in the auction of gold collected under the Medium and Long-Term Deposit schemes? +

Response: No.

16. Query: Can a depositor avail a rupee loan against the collateral of deposits made under the scheme? +

Response: Yes. Rupee loans can be availed against the collateral of Deposit Certificates issued by the banks under GMS.

17. Query: Can banks hedge their gold exposures arising from operation of GMS? +

Response: Yes.

18. Query: Whether interbank lending of gold mobilized under GMS is allowed? +

Response: Yes. Designated banks are allowed to lend gold mobilized under the Scheme to other designated banks for similar use as prescribed under the scheme.