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RBI Asks Banks to Immediately Pay Interest on Gold Under GMS
October 24, 2017
The central bank RBI has asked the banks to “immediately” pay the interest collected on the gold deposited by customers and businesses under the Gold Monetization Scheme (GMS).
The government had launched the GMS scheme in 2015 to discourage gold imports that were affecting the currency account deficit. Under this scheme, an individual can deposit gold with select banks in the account of the central government either for medium-term (5-7 years), or long-term (12-15 years).
RBI recently sent notifications to concerned banks, asking them to “immediately” pay the interest amount due to the gold depositors and to ensure that the payments are made on time in the future as well.