5. Where can the deposit be made?
The deposit of gold can be made at any scheduled bank as per the list of scheduled banks under the Reserve Bank of India.
6. How will the authenticity of the gold be verified?
A total of 331 Assaying and Hallmarking Centers’, spread across various parts of the country, which meet criteria as specified by Bureau of Indian Standards (BIS) have been enlisted by the government. These centers have been entrusted with the task of Collection and testing for purity of gold, for the purpose of this scheme.
7. How to open an account for gold monetization?
Individuals willing to open a gold deposit account have to do so with a scheduled bank as listed under RBI guidelines. The nature of the account would be similar to normal zero balance saving bank accounts.
The documents which are required to open the account are also the same as those required for any savings bank account opening viz. customer (KYC) form along with valid address proof, ID proof and passport size photograph.
The following additional steps are to be followed for this scheme:
i. Once verification of details is completed, depositors need to approach the government authorized Collection and Purity Testing Centres (CPTC). The bank will provide this list to the depositor.
ii. CPTC will carry out a detailed assessment of the gold and once the verification is successfully done they will issue a receipt for the gold quantity which is signed by the authorized signatories of their centre.
iii. Depositor will then have to submit the receipt in the bank who will in turn issue a final deposit certificate to the depositor with all relevant information including the tenure for which the deposit is made.
As many investors think, it is NOT a scheme in which they collect your jewels and pay interest for the period and return the same jewels that you have deposited. If you deposit jewels, that will be converted and transformed into equivalent coins or bars and used by the bank. When you withdraw, you will get the equivalent money or the equivalent amount of gold coins or bars.
The author is Ramalingam K, CFP CM is the Chief Financial Planner at holisticinvestment.in, a leading Financial Planning and Wealth Management company