RBI allows lenders to count short term bullion deposits under gold monetisation scheme as part of CRR, SLR
Q. RBI has indicated on 23rd October, 2015 that lenders will count short term bullion deposits under the gold monetisation scheme as part of the following:- Published on 26 Oct 15a. CRR
b. SLR
c. Both of the above
d. Neither of the above
ANSWER: Both of the above
RBI has allowed lenders to count short term bullion deposits under the gold monetisation scheme as part of CRR or SLR. This will increase the appeal of the plan for this sector. This measure is part of RBI guidelines for gold scheme aimed at ensuring Indian households deposit gold at lenders in exchange for interest rate payments. RBI has indicated it will permit banks to take minimum deposit of 30 grams of gold from persons which will be placed in the bullion for a period of one to 15 years. Short term bank deposits will attract CRR and SLR. The stock of gold mobilised as per the scheme by banks will count for general SLR requirement. This will provide additional capital to banks for lending in productive sectors. CRR is the portion of total deposits to be placed with RBI in cash and SLR is the portion of the deposit parked in government securities. Banks have to set aside 4% of total deposit for CRR while 21.5 percent is for meeting SLR requirement. There will be provision for premature withdrawal subject to minimum long in period and penalty will be assessed by individual banks.
