Changes in the rules of gold monetization scheme, gold will not be available if the investment is withdrawn before maturity
The Reserve Bank has changed the rules of Gold Monetization Scheme (GMS). According to the new rules, if the investor redeems from the GMS scheme before maturity, then the payment will be made in rupees instead of gold.
After the expiry of the GMS scheme, the investor can opt for physical gold. The government had launched the Gold Monetization Scheme in November 2015 with an aim to reduce the import of gold in the country and to market the gold lying idle in the household.
India is completely dependent on imports to meet its gold requirement. During the year 2021, the country imported 1067.72 tonnes of gold as compared to 430.11 tonnes in the previous year.
The Reserve Bank said in a circular that in the event of redemption on maturity, the investor will have the option to choose between gold and rupee.
The scheme allowed investors to deposit gold in short term, medium and long term schemes. In which the term of short term bank deposits is 1 to 3 years, medium term 5 to 7 years and long term 12 to 15 years, in which investors will get 3.5 percent interest annually.