Revamped Gold Deposit Scheme (R-GDS)- Sneak-peek to SBI’s new innovative scheme

What is a gold deposit scheme?

The gold deposit scheme offers fixed deposits in gold. Any customer who has an idle amount of gold can invest in this scheme. This provides safety and security of gold along with that it gives interest on deposits to the customer.  

What is the SBI Revamped gold deposit scheme?

Revamped gold deposit scheme (R-GDS) is offered by the State Bank of India. In this scheme, the depositor can deposit their gold in form of a fixed deposit and the SBI scheme assures a fixed rate of interest on the gold along with security. This step is taken for mobilizing the Gold of the country and make effective use of it. This scheme allows the customer to earn interest and avail of tax benefits at the same time.

See also:-New tax rules for freelancers

What is eligibility for revamped gold deposit scheme?

Any category of Indian residents such as individual, Hindu undivided family(HUF), partnership firm, mutual fund, charitable institution, companies, that is own under the central Government of India or government-owned another separate entity is eligible to invest in a gold deposit scheme. 

Features of gold deposit scheme

• The minimum amount of gold to be deposited is 10 grams of raw gold with no upper limit.
• The deposit can be in form of raw gold( coin, bar, jewelry) except metals and other stones
• Customers have to submit an Application form, Address proof, Identification proof, etc. 
• A certificate would be issued after melting and minting gold in Government India mint a certificate would be issued only for pure gold elements
• A certificate would be issued after 90 days of submitting all the required documents.
• A nomination facility is available for this scheme under a single name. 

What are the types and rates of interest for R-GDS?

Tenure:- 1 year 

Rate of interest:- 0.50% p.a.

(1) Short term gold deposit (STGD)

Tenure:- Above 1 year to 2 year

Rate of interest:- 0.55% p.a.

Tenure:- Above 2 year to 3 year 

Rate of interest:- 0.60% p.a.

(2) Medium term gold deposit (MTGD)

Tenure:- 5-7 years

Rate of interest:- 2.25% p.a.

(3) Long term gold deposit (LTGD) 

Tenure:- 12-15 years 

Rate of interest:- 2.50% p.a.

Also know about:-Best investment assets in India

What are the ways of repayment of interest? 

(1) STGD:- In the case, of Short term gold deposit Interest can be redeemed either in form of gold or equivalent put a value in form of rupees on the date of maturity.

(2) MTGD and LTGD:- In the case, of a Medium-term and long-term gold deposit scheme the option is to make either repayment in gold or rupees equal to the value of gold. However, it is said that 0.20% of administrative charges are to be levied in case of gold redemption. In the case of MTGD and LTGD, the principle would be redeemed in form of gold and interest would be in form of rupees which would be paid annually on 31st March.

Note:- The interest would be paid in form of simple interest annually or cumulative interest. The option would be given to the depositor at the time of deposit.

Premature payment

(1) STGD:- Interest can be withdrawn after a locking period of one year along with the penalty applicable on the interest amount. 

(2) MTGD:- After the withdrawal period of a three-year gold deposit can be withdrawn anytime along with a penalty charged on the total amount of the interest.

(3) LTGD:- After the withdrawal period of five years the Gold Bond can be withdrawn anytime along with the penalty charged on the interest amount.

Nomination facility 

This scheme allows nomination facility in case of single or individual account holder. 

History of Re-vamped gold deposit scheme (R-GDS)

The gold deposit scheme was introduced by the government of India in 1990, unfortunately, the scheme didn’t gain much success. Later the scheme was re-introduced by the State Bank of India (SBI) in 2015 as a Re-vamped gold deposit scheme (R-GDS) along with a gold metal scheme. All the scheme of gold falls under Gold monetization scheme.

What is a gold deposit scheme?

The gold deposit scheme offers fixed deposits in gold. Any customer who has an idle amount of gold can invest in this scheme. This provides safety and security of gold along with that it gives interest on deposits to the customer.  

What is the SBI Revamped gold deposit scheme?

Revamped gold deposit scheme (R-GDS) is offered by the State Bank of India. In this scheme, the depositor can deposit their gold in form of a fixed deposit and the SBI scheme assures a fixed rate of interest on the gold along with security. This step is taken for mobilizing the Gold of the country and make effective use of it. This scheme allows the customer to earn interest and avail of tax benefits at the same time.

See also:-New tax rules for freelancers

What is eligibility for revamped gold deposit scheme?

Any category of Indian residents such as individual, Hindu undivided family(HUF), partnership firm, mutual fund, charitable institution, companies, that is own under the central Government of India or government-owned another separate entity is eligible to invest in a gold deposit scheme. 

Features of gold deposit scheme

• The minimum amount of gold to be deposited is 10 grams of raw gold with no upper limit.
• The deposit can be in form of raw gold( coin, bar, jewelry) except metals and other stones
• Customers have to submit an Application form, Address proof, Identification proof, etc. 
• A certificate would be issued after melting and minting gold in Government India mint a certificate would be issued only for pure gold elements
• A certificate would be issued after 90 days of submitting all the required documents.
• A nomination facility is available for this scheme under a single name. 

What are the types and rates of interest for R-GDS?

Tenure:- 1 year 

Rate of interest:- 0.50% p.a.

(1) Short term gold deposit (STGD)

Tenure:- Above 1 year to 2 year

Rate of interest:- 0.55% p.a.

Tenure:- Above 2 year to 3 year 

Rate of interest:- 0.60% p.a.

(2) Medium term gold deposit (MTGD)

Tenure:- 5-7 years

Rate of interest:- 2.25% p.a.

(3) Long term gold deposit (LTGD) 

Tenure:- 12-15 years 

Rate of interest:- 2.50% p.a.

Also know about:-Best investment assets in India

What are the ways of repayment of interest? 

(1) STGD:- In the case, of Short term gold deposit Interest can be redeemed either in form of gold or equivalent put a value in form of rupees on the date of maturity.

(2) MTGD and LTGD:- In the case, of a Medium-term and long-term gold deposit scheme the option is to make either repayment in gold or rupees equal to the value of gold. However, it is said that 0.20% of administrative charges are to be levied in case of gold redemption. In the case of MTGD and LTGD, the principle would be redeemed in form of gold and interest would be in form of rupees which would be paid annually on 31st March.

Note:- The interest would be paid in form of simple interest annually or cumulative interest. The option would be given to the depositor at the time of deposit.

Premature payment

(1) STGD:- Interest can be withdrawn after a locking period of one year along with the penalty applicable on the interest amount. 

(2) MTGD:- After the withdrawal period of a three-year gold deposit can be withdrawn anytime along with a penalty charged on the total amount of the interest.

(3) LTGD:- After the withdrawal period of five years the Gold Bond can be withdrawn anytime along with the penalty charged on the interest amount.

Nomination facility 

This scheme allows nomination facility in case of single or individual account holder. 

History of Re-vamped gold deposit scheme (R-GDS)

The gold deposit scheme was introduced by the government of India in 1990, unfortunately, the scheme didn’t gain much success. Later the scheme was re-introduced by the State Bank of India (SBI) in 2015 as a Re-vamped gold deposit scheme (R-GDS) along with a gold metal scheme. All the scheme of gold falls under Gold monetization scheme.

 Edited and proofread by: nikita sharma