RBI issues guidelines for Gold Monetisation Scheme
Q. RBI has issued guidelines for Gold Monetisation scheme that enables banks to fix own _________ rates on gold deposits.- Published on 26 Oct 15a. Interest
b. Savings
c. Discount
d. None of the above
ANSWER: Interest
RBI on 24th October 2015 has issued guidelines for Gold Monetisation Scheme that permits banks to fix their own interest rates on gold deposits. RBI notification comes ahead of formal launch on scheme by PM Modi. Gold deposit scheme is aimed to mobilise 20,000 tonnes of idle precious metals with households and institutions. According to guidelines for Gold Monetisation scheme,banks can set interest rates on such deposits and principal and interest of deposit will be denominated in gold. Redemption of principal and interest at maturity will, at the option of the depositor will be in Indian rupees equivalent of the despoiled gold and accrued interest based on gold price prevailing at time of redemption or in gold. Option in this regard will be made by depositor at time of making the deposit and should be irrevocable. Interest will be credited in deposit accounts on respective due dates and can be withdrawn on a periodic basis or at maturity as per deposit terms. Designated banks will accept gold deposits under short and medium as well as long term government deposit schemes.
