Gold Deposit Scheme

• Gold Monetisation Scheme 

• Sovereign Gold Bond Scheme 

• Gold Coin and Bullion Scheme

1. Gold Monetisation Scheme

This scheme was launched in September 2015 by the Indian Government as an alternative to the previously existing Gold Deposit Scheme. The gold monetisation scheme turned into revamped Gold Deposit Scheme, which encompasses the ‘Gold Deposit Scheme’ and the ‘Gold Metal Loan’ scheme.

The main objective of introducing this scheme was to mobilise gold kept in households or institutions and use it for production. In this way, it would lessen the country's dependence on imported gold.

In short-term, medium-term, and long-term, this scheme ranges between 1 to 3 years, 5 to 7 years, and 12 to 15 years, respectively. According to this scheme, financial institutions choose the lock-in period and the penalty amount. 

2. Sovereign Gold Bond Scheme

Sovereign Gold Bond (SGB) is a government security denominated in gold grams. In general, it is an alternative to physical gold. On behalf of the Indian Government, the Reserve Bank of India administers the sovereign gold bond scheme.

The Reserve Bank of India offers gold bonds on behalf of the Indian Government. In general, these bonds are calculated in gold grams.

Under this scheme, the maximum time limit for investing in bonds is 8 years. In addition, this scheme provides you with the scope to close it from the fifth year.

3. Gold Coin and Bullion Scheme 

The Gold Coin and Bullion Scheme is another new programme launched by the Indian Government on 5th November 2015. The least deposit for this scheme is raw gold (bars, coins, jewellery excluding metals and stones) equal to 30g of gold. However, there is no maximum deposit limit in this scheme.

• Redeeming the deposited gold before its maturity is possible, but that attracts a penalty.

• Financial institutions have the authority to decide how to use the gold regardless if it is for RBI Gold reserves, auctioning etc. 

• The worth of gold deposited decides the interest rate payable in cash.

• You can deposit your gold in all common forms, such as jewellery, coins and bars. 

• While financial institutions determine the interest rate on gold deposits for short-term schemes, the Government of India has set an interest rate on medium and long-term gold deposits.

• The scheme requires you to pay a predetermined monthly instalment for 11 months. Paying a monthly instalment of a minimum of ₹500 is essential for investing in the gold scheme.

• This scheme offers no cash refund, so the return on investment can only be executed in the form of gold only.

• You can purchase jewellery for the expected value just after a month from the day the previous instalment is paid. Exclusions of jewellery products that you can buy include ruby, emerald, vintage jewellery, diamonds, platinum, and silver.

2. GRT Golden Seed Savings Scheme

The features and benefits of the GRT Golden Seed Savings Scheme are as follows:

• Instalments should be paid per month mandatorily for a total of 11 months.

• If the wastage amount is more than 18% of accumulated gold, you will need to bear that amount.

• As per this scheme, instalment amounts remain fixed, and the maturity date cannot be changed.  

• You are not eligible to get the ‘Discount on Purchase’ option if you discontinue before 7 months after enrolment. 

• The prevailing gold rate on the realisation date will be considered if any cheque is dishonoured. Payment defaults will linger the maturity date by that many months for which the default has happened.  

• Instalment payments need to be cleared before the 10th day of each month for 15 months.

• As soon as the monthly instalment amount is cleared, gold will be credited to your account based on the prevailing rate.

3. Gold Scheme Offered by Kalyan Jewellers 

Mentioned below are some of the important features and benefits of the ‘DHAN SAMRIDDHI Scheme’ provided by Kalyan jewellers:

• The monthly instalment amount starts at ₹5,000. If there is a default on monthly instalments, you will have to pay 0.25% extra as a penalty on the making charges. 

• A long-term investment benefit related to your child’s higher education and marriage is also available. 

• You, as the holder of the gold loan scheme, must be present during the closure of the scheme.

• The incapability to clear the balance amount by the 12th month may cause the cancellation of your purchase. The earlier payments will be refunded via a demand draft and then sent to the address that was registered during the enrolment. 

• The maximum tenure of this is 365 days, and it is mandatory to close the scheme just after buying the chosen ornament.

4. Tanishq Golden Harvest Scheme

Following are the details of the Tanishq Golden Harvest Scheme:

• According to this scheme, you have to make a monthly payment for 6 months or 10 months as per your selected term, which can be redeemed after the maturity of this scheme.

• You are entitled to a 75% discount while purchasing gold jewellery via this scheme.

• Failing to clear payments for the above 2 months can cause the cancellation of this gold scheme, and your principal amount will get refunded.

• The scheme even provides a special discount on deposited amounts.

• This gold scheme account will close after 235 days from its issuance if you select the 6-month term. On the other hand, if you have chosen the 10-month term, the scheme will continue for 385 days. 

• This scheme gives you flexibility for depositing an amount per your financial affordability. The minimum amount payable begins from ₹2,000.

• Step 1: Select an authorised bank for the scheme

• Step 2: Visit a branch, collect and fill out the application form with the necessary details

• Step 3: Submit the application form and required documents to the bank

• Step 4: Visit the nearest Collection and Purity Testing Centre (CPTC) within 7 days of filling out the form, along with the customer copy of the application form

• Step 5: Submit your gold at the CPTC with your consent for the melting process

• Step 6: The CPTC will provide you with a deposit receipt containing your gold's quantity and purity details

• Step 7: Wait for the deposit certificate sent to you via courier and on your registered e-mail ID
   

The deposit certificate will contain the details of your gold quantity, purity, and other relevant scheme details.

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