Q. What is the Purpose of Gold Deposit Scheme?
A. i. To mobilize the idle gold in the country and put it into productive use
ii. To provide you an opportunity to earn interest income on your idle gold holdings, with safety, liquidity and tax benefits.
Q. How it is used for productive purpose?
A. Your gold will be procured, assayed and converted into gold bars for lending to jewellers for manufacturing of gold jewelleries.
Q. What benefits I can get from Gold Deposit Scheme?
A:
i. You can have safety & security of gold in Bank without any cost
ii. You can earn interest income on your idle gold
iii. You can avail loans in case of exigencies against your Gold Deposit Certificate from any branch of SBI
iv. Tax benefits- (As amended by Finance Act 1999)
a) You can save Income tax [under section 10(15)(vi) of Income Tax Act] on your interest earned from your gold deposit scheme
b) You can get exemption from Wealth Tax [under section 2(ea) of Wealth Tax Act}) on the value of assets deposited in the scheme
c) You can get exemption from Capital Gain Tax [under section 2(14) (vi) of Income Tax Act]) on your deposit under the scheme.
Q. Who can deposit?
A. Any Resident Indian of the following categories
(i) Individuals, singly or jointly
(ii) HUFs
(iii) Trusts
(iv) Companies.
Q. What is the minimum quantity of gold I can deposit?
A. You can deposit minimum 500 gms of gold in gross weight. There is no upper limit for such deposits.
Q. What are the periods for which I can keep the Deposit?
A. Gold Deposits are available for maturity periods of 3, 4 or 5 years (full year terms
Q. How much Interest I can get?
A. The current interest rates are:
Tenure(full year term) Rate of interest
3 Years 0.75% p.a.
4 years 1.00% p.a.
5 years 1.00%.p.a.
Interest rates will be changed by the Bank from time to time which will apply to future deposits
Q. Is the interest not low?
A. Interest is calculated in Gold Currency (XAU) based on principal quantity of deposit and applicable rate of interest. Effectively, you get interest amount calculated in gold terms.
Q. Is the interest is cumulative or non cumulative?
A. Both options are available. In cumulative option, interest is compounded and paid on maturity. In non-cumulative option, interest is paid on 31st March every year.
Q. Can I earn interest in Gold?
A. Yes. Interest is calculated in terms of Gold Currency (XAU) but paid in rupees only. The conversion of interest from Gold Currency to rupees will be made at the London AM rate (London’s morning rate) and RBI Reference rate for Dollars on the date of maturity or on the day of payment.
Q. What will be effective date of interest?
A. The effective date of the deposit for payment of interest will be the date of completion of assaying or 30 days from the date of deposit of gold at the Designated Branch (DB), whichever is earlier and interest will accrue as from the effective date.
Q. Where I have to deposit gold?
A. You can deposit at 54 select Designated Branches of SBI as follows:
| CIRCLE | BRANCHES |
| Ahmedabad | Ahmedabad Main, Baroda Main ,Darbargadh (Bhavnagar),Rajkot, Surat, Darba |
| Bangalore | Bangalore Main, Belgaum, Mangalore |
| Bengal | Burdwan, Kolkata Main, Howrah |
| Bhopal | Bhopal Main, Gwalior, Indore Main, Raipur Main |
| Bhubaneswar | Bhubaneswar, Cuttack |
| Chandigarh | Amritsar, Chandigarh, Jallandhar, Jammu, Ludhiana |
| Chennai | Annasalai (Chennai), T.Nagar (Chennai), Coimbatore, Madurai |
| New Delhi | Deharadun Main, Agra Main, Jaipur Special,Meerut Cantt. Chandni Chowk Delhi,PBB-New Delhi |
| Hyderabad | Hyderabad, Secunderabad, Tirupati, Vijaywada, Visakhapatnam |
| Kerala | Calicut, Ernakulam, Thrissur, Thrivanathapuram |
| Lucknow | Kanpur Main, Lucknow Main, Moradabad, Varanasi |
| Mumbai | Mumbai Main, Nagpur, Panaji, Pune, Shivaji Park (Mumbai), Bullion Branch Mumbai |
| Patna | Patna Main, Ranchi |
| North East | Guwahati |
Q. What documents I have to bring at the time of deposit?
A.
- Identity proof
- Address proof
- Photograph
(Similar to opening of any deposit account)
You are also required to submit :
- Application Form,
- Nomination Form (in case of single individual),
- ECS Form (for credit of interest direct into your account),
- Inventory Form (giving description of gold, No. of pieces and weight of gold after preliminary checking of purity).
Q. What proof shall I get on deposit of my gold to Bank at the time of deposit?
A. A provisional receipt will be issued by the Designated Branch which accepts your gold.
Q. Whether my gold will be melted?
A. Yes, Gold will be melted after removing the base metal and non-gold elements, if any, to know the pure gold content of uniform fineness
Q. Can I get the gold of same weight as I tendered at the time of deposit?
A. No. The weight of gold after melting and refining to uniform fineness will be different from the quantity of gold tendered.
Q. Can I get my ornaments back at the time of maturity?
A. No. Your gold will be melted and converted into bars. The Gold deposit certificate will be issued for the weight of pure gold (in 999 fineness).
You have the option to get maturity payment either in gold or in equivalent cash as on the date of maturity or payment.
Q. How can I be sure about the final weight of pure gold?
A. The gold will be melted in India Govt Mint (IGM), Mumbai, whose report will be final and binding on all i.e. depositor and Bank.
Q. Whether the report of India Govt Mint will be made available to me?
A. No. It will be an internal document for the Bank. We will issue the Gold Deposit Certificate based on this report.
Q. How can I get my Gold Deposit Certificate (GDC)?
A. The Nodal Branch, i.e. Bullion Branch, Mumbai will issue GDC within 90 days from the date of receipt of gold and will send the certificate directly to you.
Q. What are the denominations available in GDS Certificate?
A. Ordinarily, one certificate will be issued for the entire quantity of deposit. However, you can opt for the denominations of 500 gms and 1000 gms, with additional certificate for the balance quantity, if any. (max 5 certificates)
Q. Whether Nomination facility is available?
A. Yes. Nomination is available when the deposit is in single name in individual capacity (and not in cases of HUF, Trust and Company).
In case of deposit of individuals in joint names, the second applicant will be deemed as the nominee.
Individual depositor has to fill in Nomination form. Any nomination will automatically lapse in case the depositor transfers the deposit certificate to another person.
Q. Can I seek repayment of deposit prematurely?
A. There is a lock in period of one year. After 1 year, premature payment is allowed.
Q. Is there any penalty for premature payment?
A. Yes, penalty is stipulated for premature payment. The present rates of penalty are as under:
| Tenure | Penalty Rate |
| 1 year to 3 years | 0.50% |
| Beyond 3 years | 0.25% |
Penalty will be imposed on the interest rate applicable for actual No. of completed years.
Q. What is the redemption procedure?
A. You have to submit the original certificate, duly discharged on the reverse, to reach the Nodal Branch one month before the maturity (15 days if repayment is in cash).
The principal quantity of deposit will be paid in gold or cash, as per the option given in Application Form.
If payable in gold, the fineness will be either 995 or 999 as per Bank’s option. Any fraction quantity (say below 10 gms) will be paid in equivalent rupees.
Q. Where will be my gold delivered on maturity?
A. The branch where you have deposited the gold will deliver the gold to you on production of the advice sent by the Nodal Branch (to whom you had submitted the original Certificate was submitted.)
Q. Can I renew my gold deposit?
A. Renewal is permitted any time after maturity provided renewal is made for a future date and for the tenor and interest rate prevailing on date of maturity. This is of course subject to the Bank continuing the scheme.
Q. Can I transfer GDS certificate to anybody?
A. Yes. Gold Deposit certificate is transferable by endorsement and delivery.
The transfer will need to be registered with the Nodal Branch of Bank, i.e. Bullion Branch, Mumbai by submitting a prescribed form before 30 days of due date of interest payment and before 90 days of the date of maturity.
Q. How can I avail loans in case of exigencies against my Gold Deposit Certificates?
A: Rupee loans are available from any branch of SBI against pledge of Gold Deposit Certificate (just like Demand loan against Bank’s Fixed Deposit) up to the amount of 75% of the gold value on the day of loan.
Lien will be noted on the Gold Deposit Certificate at the Nodal branch for this purpose.
In case of loan from other Bank, the certificates will have to be transferred in favour of the bank who will sanction the loan.
For more details visit the nearby SBI Branch / Contact 24×7 Helpline 1800 11 22 11 (Toll Free from BSNL / MTNL landline) or 080-2659 9990 (other lines) / e-mail: contactcentre@sbi.co.in or visit us at www.sbi.co.in
Click here to know SBI’s Gold Deposit Scheme
I am new to this gold banking, and this is pretty interesting. I always had a doubt, but want to clear it now. My question is:
#1. Is there any sort of a/c where I can put some money and the bank can exchange it with Gold and pay me interest based on GDS.at the end of term period and when the policy gets matured, the gold can be converted into money and put back into my a/c or i cant take the gold.
#2. is there any bank where i can sell back my gold (bought from bank) for money?
Dear Krishna,
#1.Presently there is no such scheme with any bank/institution. However, in the Gold ETF scheme you can exchange your money with the gold which can be reconverted into money after withdrawal or alternatively you can invest in any Gold Mutual fund.
#2. Banks in India are not permitted by RBI to buy back the gold coins sold by the banks.
Regards, Admin
Dear SBI Team,
There is any other amount we have to deposite with our gold? Because my father went to SBI bank for opening the account for gold sceme, but they are asking to deposite Rs. 50,000/- amount with gold.
They told to father, this Rs. 50,000/- deposite will refund when you close the account.
Please let me know the above query.
Regards,
Sachin Rane.
Dear Sachin,
We are Banking bible Team and not SBI team. As per the Gold deposit scheme of SBI there is no need to deposit Rs.50,000/-. One need to have a account with the bank just to verify as pere KYC guidelines. Minimum deposit of gold is 500 grams. Further only limited branches are not authorised to open the account under GDS. regards.
Admin
D/S.,
Pl. clarify whether SBI Gold deposit scheme is only for idle gold (ornamental which could be melted) or it is extended even to bar gold.
If it is extended to bar gold also, I would like to know whether I could purchase the same from SBI and deposit with SBI?
If my second querry is possible I would like to know whether the benefits extended under the scheme still hold good for the deposit of bar gold, which need not be melted and assayed for its purity?
with regards.
Dear Sabitha,
The SBI’s Gold Deposit Scheme is also applicable for bar gold.
You can purchase the same from SBI and deposit it with SBI.
What ever the gold comes to SBI under SBI GDS it is assayed and minted at India Govt. Mint at Mumbai in 995 pure gold. If the bar deposited by you is of 995 fineness/purity it will not be assayed and minted and its weight will be accepted as it is, but you will not get the same bar back after maturity. regards,
Admin.
Hello Admin,
I am an NRI and have 999 purity of gold bars.
1, what will be the tax applicable on my return to resident Indian status
2. Will I get back the 999 purity gold or will it be 995 purity.
3. How is interest calculate in simple rupee/gold terms for a deposit of 500 gm for 4 years
1. Only Resident Indian can make deposit under GDS.
2. Depositor gets back gold either in 999 purity or equillant 995 purity gold.
3. Interest is calculated on London AM Gold rate multiplied by dollar rupee reference rate declared for the day by RBI added by applicable duty on import of gold. Interet is paid in rupee only.
i have sbi account in my home town and i am not salaried employee (job searching ) lives in hyderabad . is am eligible to take loan against gold in my home town .
Kumar
What denominations SBI accepts gold. Interest @ 1% is paid on gold value or not ??? pls. reply
Sapna
Dear Admin,
I live in Bahrain and i am frequently purchasing gold bars from bank in bahrain. this bars are sealed. It is mentioned on the bars 999 purity. Now if i give this bars to SBI, still it needs melting? Do you think after melting the purity still remains 999. if not, what can i do?
regards
kedar
Dear Kedar,
SBI will send the same to India Govt. Mumbai for purity testing and weight. Now it depends on the IG Mumbai to melt it or accept its purity as it is. AIn case it is melted purity and weight is not going to affect. It purity will be converted into 995 and you will get the certificate for 995 purity. But in any case you r not going to get the same gold bars back. In case you have any other query, please feel free to write to us. regards,
Admin
Hi,
I have following questions:
1. What happens if the gold certificate is lost due to any reason ?
2. I have read somewhere that the certificate is also available for 7 years duration. Is it correct ?
3. If the certificate is encashed after some delay from maturity, is there some interest / penalty ?
T & R
i want to know what about Jewelry can we deposit that also and what we will get back after maturation. kindly clarify.
sir,
can you please tel me.. after maturation..if i dont want to take bar…can i get cash with intrest..Is it possible.