Gold Monetization Scheme, 2015

RBI/2017-18/192

DBR.IBD.BC.109/23.67.001/2017-18

June 7, 2018

All Scheduled Commercial Banks (excluding RRBs)

Dear Sir/Madam

Gold Monetization Scheme, 2015

In exercise of the powers conferred on the Reserve Bank of India under Section 35A of the Banking Regulation Act, 1949, the RBI makes the following amendments in the Reserve Bank of India (Gold Monetization Scheme, 2015) Master Direction No.DBR.IBD.No.45/23.67.003/2015-16 dated October 22, 2015, with immediate effect.

1. The existing sub-paragraph 2.2.1 (ii) shall be amended to read as follows:

“The short term deposits shall be treated as bank’s on-balance sheet liability. These deposits will be made with the designated banks for a short period of 1-3 years (with a facility of roll over). Deposits can also be allowed for broken periods (e.g. 1 year 3 months; 2 years 4 months 5 days; etc.). The rate of interest payable in the case of deposits for maturities with broken periods shall be calculated as the sum of interest for the completed year plus interest for the number of remaining days at the rate of D/360*ARI”