How the Gold Deposit Scheme works?
In olden days the people were under impression that if the Gold is available in their homes that will be useful for meeting the expenditure of their important needs. They are habituated to obtain cash on mortgage of the Gold or sold out the Gold. However they secured money on the gold and full fill their immediate needs. They thought the investment on Gold is a safety measure. In Indian culture the Gold is became a hereditary property and can be transferable to their nominees. In those days, these kinds of values are there to Gold. Now-a-days what is the specific use for keeping the Gold in your Home? As a matter of fact there is no safety to keep the Gold with you, since several thieves are surrounded to you. If the Gold has been kept in safety lockers we have to pay the rental charges.
Don’t worry about your valuable gold safety. At present you can keep the Gold in the banks as a Golden deposit for safety measures and income. To keep the Gold in bank as a deposit there is no necessity to pay any charges to the bank. The bank itself pays the interest on your deposited value of Gold. But the offering interest rate by the banks is very nominal. The banks payable interest rate may be 1 % to 2%. However the nominal rate of interest payment is beneficial to you. If the Gold has been kept in the bank safety locker then you have to pay the locker annual rent charges. Without any charges the bank people kept your gold with them in the Golden deposit scheme and interest will be paid to you on the value of the Gold deposited. This is a very good scheme, since your gold is keeping by the bank people safety measures and they are paying interest on the value of your Gold. Really this offer is a chance to the individuals who are having Gold in huge quantity. The value of the gold will be increased as per the market rate.
How this scheme will work?
The rate of the Gold available with you will be arrived and fixed by the bank authorities based on the market value as on the date of Gold deposit scheme and a fixed deposit receipt or a pass bill will be issued by the bank to the individual. After mature date the Gold will be returned with interest. Generally the Gold deposit scheme duration is 3 to 7 years. After deposit one year locking period is there. Hence before one year the cancellation is not permitted in this deposit scheme. Only on completion of one year, even though the duration of time is not completed the Deposit can be cancelled by the individual. In this procedure the individual has to pay penalty. Before 3 years if the individual has intended to come out from this scheme, 0.5%, after completion of 3 years 0.25 % penalty is chargeable to him. The interest earned on Gold deposits is very less, but the value of the Gold as per market will be increased and also put in safe custody of the bank. At present on Gold deposits for 3 years 1%, for 4 years 1.25%, above 4 years 1.5% interest is offering by the bank .
How much Gold to be deposited?
Minimum ½ kg, i.e., 500 grams is required to deposit in this scheme. The single person can be considered in this deposit scheme or with his 3 or 4 partners names, the fixed deposit receipt can be issued on the name all partners. From the date receipt of deposit of Gold, the investment deposit certificates will reach the individual within 90 days. The Gold in the shape of coins, rods and ornaments can be deposited. At this juncture one thing should make clear, the Gold which has been accepted by the bank in any shape, the same will be melted to 0.99 caret quality gold and the value will be assessed. On maturity the same quality Gold will be returned or the value as on that market rate will be paid in rupees. All these transactions will be conducted under the supervision of R.B.I and by the selected Banks. Hence there is no doubt about safety of your Gold and quality.
Who are offering?
In the year 1999 this Gold Deposit Scheme has been started in some selected Banks. Presently the S.B.I & Corporation Banks are offering this Gold deposit scheme. In our Andhra Pradesh state, the State Bank of India, Hyderabad, Main Branch, Secunderabad, Tirupati, Viskhapatnam and Vijayawada branches are offering this scheme.
BENEFITS
- Without any locker fees your Gold can be deposited safely
- Income is available on the deposit in the shape of minimum interest
- The interest will be expected from the purview of Income Tax
- No Wealth tax & capital gain tax against this scheme
- Nomination facility is available in this Deposit scheme
- On maturity date if the individual is not interested to take back the gold, he can be paid with cash on the market value
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Themocracy
this info is really good. I have one query that can any private co or any firm can offer the same scheme?
@paresh
i don’t know whether it is allowed for any pvt. co./firm to offer gold deposit scheme. but i know at least one company based in pune is offering such scheme for minimum 24k 50gm. gold for atleast 1 month duration with a security cheque 60% a/m and insurance guarantee with benefit of rs.120/- per 10gm per month, payable on completion of the period.