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Introduction of Gold Monetization Schemes .

Introduction of Gold Monetization Schemes . - Dated:- 17-9-2015 - F.No 2016/2015-FT Government of India Ministry of Finance Department of Economic Affairs (Investment Division) Dated 15th September 2015 OFFICE MEMORANDUM Subject: Introduction of Gold Monetization Schemes'. The introduction of the Gold Monetization Schemes' (GMS) has been approved. 2. The guidelines of the Gold Monetization Schemes' (GMS) will be as under: 1. Introduction The Gold Monetization Schemes provide differen .....

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o broaden the ambit of the existing schemes from merely mobilizing the gold held by households and institutions in the country to putting this gold into productive use. The long-term objective which is sought through this arrangement is to reduce the country's reliance on the import of gold to meet the domestic demand. III. Scheme The Gold Monetization Schemes consist of the Revamped Gold Deposit Scheme and the Revamped Gold Metal Loan' scheme. The basic features of both the schemes are .....

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t. The following will be the process for depositing gold: (a) Collection and Purify Testing Centres: There are over 300 Assaying and Hallmarking Centres that are certified by BIS and are spread across various parts of the country (The list of the number of centres in each State is at Attachment-A). They are engaged in certifying the purity of the gold that the jewellers manufacture and for which they charge a fee from the jewellers. The Assaying and Hallmarking Centres are well equipped to condu .....

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be able to handle all cartages of gold as mentioned in IS 1417, that is Standard gold, Fine gold and 23, 22, 21, 20, 19, 18, 17, 16, 14, 9 carats of gold. Further, these Centres would be given instructions to ensure that the XRF machines employed by them are able to detect the presence of Iridium and Ruthenium in the jewellery as specified in the relevant Indian Standard. (b) Conditions: The minimum quantity of gold that a customer can bring is proposed to be set at 30 grams, so that even small .....

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d to tell the customer the approximate purity of gold content in the article. (B) Weighing and XRF of all articles would be done in the presence of the customer and the entire process will preferably be recorded by CCTV Camera. Customers would be allowed to see the readings of the weighing balance and the XRF machine. (C) If the customer agrees, he/she will have to give his/her consent for melting of gold. Customers will be free to disagree for melting of any article after weighing and XRF test. .....

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t weight of the jewellery will be taken after such removal and told to the customer. Arrangements for the jewellery to be melted and through a fire assay, its purity ascertained, in the presence of the customer would be made available. The time taken is expected not to exceed 4-5 hours. (e) Deposit of Gold: When the results of the fire assay are told to the customer, he has a choice of either refusing to accept, in which case he can take back the melted gold, after paying a nominal fee to that c .....

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time, with the KYC norms, as applicable, even prior to depositing gold at the Collection and Purity Testing Centres. This account would be denominated in grams of gold. When the customer produces the certificate of gold deposited at the Collection and Purity Testing Centres, the bank will credit the equivalent quantity of Standard gold of 995 fineness' of gold into the customer's account. In any case, the Collection and Purity Testing Centres will also inform the bank about the deposit .....

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uses, unless the banks prefer to hold it themselves. For the services provided by the refiners, they will be paid a fee by the banks, as decided by them, mutually. The customer will not be charged. • Legal Agreement between Banks. Refiners and Collection and purity Testing Centres: The banks will enter into a tripartite Legal Agreement with refiners and Collection and Purity Testing Centres, that are selected by them to be their partners in the scheme. The Agreement will clearly lay down th .....

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will be allowed in either of the options and there would be a penalty on premature redemption (including part withdrawal). v) Interest rate: The amount of interest rate payable for deposits made for the short-term period would be decided by the banks on the basis of the prevailing international lease rates, other costs, market conditions etc. and will be denominated in grams of gold. For the medium and long-term deposits, the rate of interest (and fees to be paid to the banks for their services .....

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ame weight of gold as deposited), which will have to be exercised at the time of making the deposit. In case the customer will like to change the option, it will be allowed at the bank's discretion. Redemption of fractional quantity (for which a standard gold bar/coin is not available) would be paid in cash. For medium and long-term deposits, redemption will be only in cash, in equivalent rupees of the weight of the deposited gold at the prices prevailing at the time of redemption. The inter .....

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ks may provide the mobilized gold to MMTC for minting the Indian Gold Coins. (d) Lending to jewellers: Banks may lend to jewellers under the GML. • Under short-term deposit: (a) Coins: Banks may provide the mobilized gold to MMTC for minting the Indian Gold Coins. (b) Lending to jewellers: Banks may lend to jewellers under the GML. viii) Tax Exemption: Tax exemptions, same as those available under GDS, would be made available to the customers, in the revamped GDS, as applicable. Further, th .....

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rnment under the medium/long term deposit will be credited to the Gold Reserve Fund. This Fund will be used to absorb the price risk of the gold and pay back the amounts due to the depositor, based on the gold rates prevalent at the time of redemption. The modalities for payment of the redemption amount from Gold Reserve Fund' on the due date for maturity for onward payment to the depositor will be framed by RBI. The deposit of gold will not be hedged for the risks by the Govt. of India. All .....

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and conditions set-out by the banks under the guidance of RBI. ii) Delivery of gold to jewellers: When a gold loan is sanctioned, the jewellers will receive physical delivery of gold from the refiners. The banks will, in turn, make the requisite entry in the jewellers' Gold Loan Account. iii) Interest received by banks: The interest rate charged on the GML will be decided by the banks (depending upon the interest rate paid to the depositors of gold, fee paid to refiners and Collection and p .....

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Joint Secretary to the Govt. of India Tel: 2309 2420 Attachment-A List of Collection Centres Bureau of Indian Standards State wise list of BIS recognized Assaying and Hallmarking Centres in operation and pending applications as on 31 March 2015 Sl. No. State No. of centres Pending Applications 1. ANDAMAN NICOBAR 0 2. ANDHRA PRADESH 19 3. ARUNCHAL PRADESH 0 4. ASSAM 1 5. BIHAR 3 6. CHANDIGHRAH 3 7. CHHATTISGARH 1 8. DADRA AND NAGAR HAVELI 0 9. DAMAN AND DIU 0 10. DELHI 25 4 11. GOA 0 12. GUJARAT .....

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