Who will determine interest rates on gold deposits under gold Monetisation Scheme
Q. Which of the following statements are correct about Gold Monetisation Scheme?
1. RBI will determine interest rates on gold deposits.
2. The risk of gold price changes will be borne by the Gold Reserve Fund that is being created.- Published on 01 Nov 15a. Only 1
b. Only 2
c. Both
d. None
ANSWER: Only 2
- The proposed Gold Monetisation Scheme proposes to offer tax-free interest to individual on depositing the yellow metal with banks.
- RBI has said that banks are free to fix interest rates on these deposits.
- The scheme will help in mobilizing the large amount of gold lying as an idle asset with households, trusts and various institutions in India and will provide a fillip to the gems and jewellery sector.
- Over the course of time this is also expected to reduce the country's dependence on the import of gold.
- The new scheme consists of the revamped GDS and a revamped GML Scheme.
