Indians are good at saving gold, as it is an integral part of our culture. Gold also provides financial security. It’s the only property that retains real value and relishes when all the other asset classes dive.
Nevertheless, there is no way to earn interest on it while it remains stationary in the bank lockers. Alternatively, one can put his gold in bank safe or pay the bank to store it in a locker or deposit his gold in a Reserve Bank of India (RBI) designated bank and earn interest from it.
The Gold Monetisation Scheme of RBI (1) can not only let one earn interest on his gold but also give a security for one’s prized possession as it will remain secure in a bank vault. It is similar to the fixed deposits, but instead of depositing cash, one can deposit his idle gold. One can get his gold back or its equivalent value along with earned interest at the time of maturity. The cost of the gold will be calculated as per its pricing at the time of maturity.
More About Gold FD or Gold Deposit Scheme
As per the Gold Monetization Scheme of RBI, it aims to mobilize the gold present in Indian households and institutes. It would also encourage gold for productive goals while reducing the country’s gold imports in the long run.
Any individual who is a resident of India can make deposits supporting the scheme. One can avail the Gold FD jointly by two or more eligible depositors. The present rules are applicable related to the joint operation of bank deposits and nominations. The minimum deposit of raw gold shall be 30 grams at one time, excluding stones and other metals. Notably, there is no maximum limit for deposits. Under the scheme, a depositor can avail two different types of Gold deposits, Short Term Bank Deposit (STBD), Medium and Long Term Government Deposit (MLTGD)
Click here to read more about the tenure and interest under the Gold Monetization Scheme.