2. What will be the tenure of deposit?
The tenure for deposit has been distributed into three term plans which are as follows:
i. Short term: 1 to 3 years
ii. Medium term: 5 to 7 years
iii. Long term: 12 to 15 years
The investor will be allowed to break the deposit during the lock-in period by paying a penalty for premature withdrawal.
3. What will be the interest rate payable on the deposit?
Initially it was proposed that the amount of interest rate payable for deposits made for the short-term period would be decided by banks and would be denominated in grams of gold.
For the medium and long-term deposits, the rate of interest (and fees to be paid to the bank for their services) will be decided by the government, in consultation with the RBI from time to time.
The interest rate for the medium and long-term deposits will be denominated and payable in rupees, based on the value of gold deposited. As of now the rate of interest is 2.25 per cent on the current price of gold for the short term and 2.5 percent for the medium and long term deposits. The interest is taxable.
4. Who is eligible to deposit under the gold monetization scheme? Is joint deposit allowed?
Deposits can be made by residents of India, HUFs’, mutual funds and exchange trading funds registered under SEBI. Yes, joint deposits are allowed with a minimum of two holders with no cap on the maximum number.