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RBI allows banks to fix interest rates on gold deposit scheme

Reserve Bank of India (RBI) has allowed banks to fix their own interest rates on gold deposits under the Gold Monetisation Scheme. In this regard RBI has issued guidelines mentioning Banks are free to set interest rate such as principal and interest on the deposit denominated in gold. Designated banks will accept gold deposits under the Short Term Bank Deposit (1-3 years), Medium (5-7 years) and Long term (12-15 years) Government Deposit Schemes. The interest on the gold deposits will be credited in the accounts on the respective due dates and will be periodically withdrawable i.e. at maturity of the deposits…Read More