It is important to check your gold’s purity and thankfully that can now be done through hallmarking centres. You can take your gold in any form to the hallmarking centre and they will assess the gold in front of you to provide you with a certificate on purity and gold content.
This certificate can be deposited by you in the bank to open your Gold savings account. There will be Know Your Customer (KYC) formalities to open the account in the bank. On the deposited gold, bank will offer to pay you annual interest. You have to choose the cash/gold redemption option and tenure of your choice at the time of deposit itself.
On completion of gold monetisation scheme tenure the bank will give 2% of interest calculated on the weight of your gold. For instance, if you deposit 100 gms of gold, at the end of the first year you can collect 102 gms of gold.
The minimum lock-in period for your gold is one year and you can deposit as little as 30g to open a gold savings account.
There are many positives to depositing under the Gold monetisation scheme:
At the end of the tenure, you can choose to take physical possession of the gold or opt for rupees for the amount of gold on that day’s price. Either way, you have to specify your preference in the beginning while opting for the scheme.
Why should I deposit my gold in the first place?
Gold lying in the locker appreciates in value if gold price goes up but it doesn’t pay you a regular interest or dividend. On the contrary, you incur carrying costs on it (bank locker charges). The gold monetisation scheme will allow you to earn some regular interest on your gold and save you carrying costs as well.
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