PNB offers attractive interest rates on unused jewellery deposits under Gold Monetization Scheme - Check all you need to know here
Gold is common in Indian households. But one must know that one can deposit one's gold coins, bars and unused jewellery and earn attractive rates of interest.
PNB Gold Monetization Scheme: Gold is common in Indian households. But one must know that one can deposit one's gold coins, bars and unused jewellery and earn attractive rates of interest. The Punjab National Bank (PNB) has informed its customers about the Gold Monetization Scheme. In case of any details and queries, the interested customers can login to the official website of PNB at pnbindia.in.
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The PNB has recently tweeted about this scheme from its official Twitter handle. The tweet said, "Secure your future. Invest in the Gold Monetization scheme today! For more information, visit: tinyurl.com/var3cr8j."
Secure your future.
Invest in the Gold Monetization scheme today!
— Punjab National Bank (@pnbindia) October 24, 2021
What is the Gold Monetization Scheme?
The interested investors must note that the Gold Monetization Scheme (GMS) is intended to mobilize gold held by households & institutions of the country and to facilitate its use for productive purposes and in the long run, to reduce country’s reliance on the import of gold. The customers can deposit their idle gold under GMS which will provide them safety, interest earnings and a lot more.
What is its purpose?
The purpose of the scheme is to mobilize the idle gold in the country and put it into productive use and to provide the customers an opportunity to earn interest income on their idle gold holdings.
Resident Indians of the following categories are eligible to make deposits:
Individuals, HUFs, Proprietorship and Partnership firms, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, Charitable institutions, Central Government, State Government or any other entity owned by Central Government or State Government.
It can be noted that joint deposits of two or more eligible depositors are also allowed under the scheme and the deposit in such case shall be credited to the joint deposit account opened in the name of such depositors.
How much can be deposited?
The minimum deposit quantity is of 10 Grams while there is no maximum limit.
What are the different types of deposits?
There are three types of deposits namely:
1. Short Term Bank Deposit (STBD) for a tenor of 1-3 years.
2. Medium Term Government Deposit (MTGD) for a tenor of 5-7 years.
3. Long Term Government Deposit (LTGD) for a tenor of 12-15 years.
Now, it can be noted that the deposit under Medium Term And Long Term will be accepted by the Bank on behalf of the Central Government. Deposites can be accepted for broken period also.
Interest rate and payment
Short Term Bank Deposit(STBD): For a period of one year the rate of interest per annum (PA) is 0.50%, for above 1 year up to 2 years it is 0.60% and for above 2 years up to 3 years the interest rate is 0.75%.
It can be noted that the principal on STBD shall be denominated in gold and interest shall be calculated in Indian Rupees with reference to the INR value of gold at the time of deposit w.e.f 05.04.2021. On maturity Interest for broken period will also be paid.
For Medium Term Government Deposit the interest rate is 2.25 percent P.A while for Long Term Government Deposit it is 2.50 percent P.A.
In the case of MTGD & LTGD, the principal will be denominated in gold. However, the interest shall be paid in Rupees annually on 31st March or cumulative interest on maturity. Broken period interest is paid at the time of maturity. Interest is calculated on gold value in rupees, at the time of deposit.
Depositor will have option to receive payment of simple interest annually or cumulative interest (compounding annually) on maturity. The option to be exercised at the time of deposit.
What kind of gold is accepted?
Gold is accepted in the form of raw gold i.e. Gold bars, Coins, Jewellery excluding stones and other metals. Customers to submit Application Form, Identification Proof, Address Proof and Inventory Form.
STBD: Deposits prior to 05.04.2021:- Redemption of principal and interest at maturity will be, at the option of the depositor, either in Gold or in INR equivalent of the deposited gold and accrued interest based on the price of gold prevailing at the time of redemption.
Deposits w.e.f. 05.04.2021:- Redemption of the principal at maturity shall, at the option of the depositor, either in INR equivalent of the value of deposit gold at the time of redemption, or in Gold. Interest will be paid in Rupees calculated on the INR value of gold at the time of deposit.
MTGD and LTGD: Redemption of the principal at maturity shall, at the option of the depositor, either in INR equivalent of the value of deposit gold at the time of redemption, or in Gold. However, any pre-mature redemption of MLTGD shall be only in INR. Where the redemption of the deposit is in gold, an administrative charge at a rate of 0.2% of the notional redemption amount in terms of INR shall be collected from depositor.
In case of any other details or queries, the interested investors can login to the official website of PNB at pnbindia.in.
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