RBI eases terms of 'Gold Monetization Scheme'; allows long-term deposits to be released in gold terms on maturity

GOLD MONETISATION SCHEME, 2015 - AMENDMENT IN MASTER DIRECTION NO.DBR.IBD.NO.45/23.67.003/2015-16, DATED 22-10-2015

CIRCULAR NO.DBR.IBD.BC.89/23.67.001/2015-16, DATED 31-3-2016

In exercise of the powers conferred under section 35A of the Banking Regulation Act, 1949, the Reserve Bank of India hereby directs that the Reserve Bank of India (Gold Monetisation Scheme, 2015) Master Direction No.DBR.IBD.No.45/ 23.67.003/2015-16 dated October 22, 2015 be modified as under:

The existing sub-paragraph 2.2.2 (v) shall be amended to read as follows:

In the case of MLTGD, the redemption of principal at maturity shall, at the option of the depositor, be either in Indian Rupee equivalent of the value of deposited gold at the time of redemption, or in gold. Where the redemption of the deposit is in gold, an administrative charge at a rate of 0.2% of the notional redemption amount in terms of INR shall be collected from the depositor. However, the interest accrued on MLTGD shall be calculated with reference to the value of gold in terms of Indian Rupees at the time of deposit and will be paid only in cas