By Abhay Ray 
Introduction
The State Bank of India (SBI) offers Revamped Gold Deposit Scheme (R-GDS), a fixed deposit scheme in gold. According to SBI, Revamped Gold Deposit Scheme (R- GDS) is in the nature of a fixed deposit in gold. The customers can deposit their idle gold under R- GDS which will provide them safety, interest earnings and a lot more.
About SBI Revamped Gold Deposit Scheme (R-GDS)
This scheme is similar to a fixed deposit scheme in gold. Under this scheme, an individual can use this account to deposit gold assets for a fixed tenure and earn fixed interest on them. This scheme ensures the safety of gold by depositing the idle gold in the bank. The gold is deposited in SBI R-GDS in the form of gold bars, coins, jewellery excluding stones and other metals.
SBI (State Bank of India) accepts these gold deposits on behalf of the Central Government of India. Therefore, the aim of this scheme (R-GDS) is –
- To put the idle gold for productive purposes.
- It allows people to earn interest on their idle gold
- Monetising the gold held by household and other institutions
- To reduce India’s dependency on gold imports
To apply for the SBI R-GDS, one must submit an application form, identity proof, address proof and inventory form at the nearest authorized branch.
Features of the SBI Scheme
- Tenure
One can invest in an SBI Revamped Gold Deposit Scheme for a short, medium and long tenure. For the short term, the duration to invest in is 1 to 3 years. Similarly, for the medium and long term, the duration is 5 to 7 years and 12 to 15 years respectively.
- Minimum Deposit
The minimum deposit that one requires to deposit under this scheme is 30 grams of 995 fineness gold. Gold can be in any form, such as coins, jewellery and gold bars. Also, there is no maximum limit of deposit under this scheme.
- Maturity payment
The interest earned in R-GDS is paid either in grams or rupee form. For short term investment (STBD), the interest and principal are paid in gold or Indian rupees. However, for medium and long term investment (MTGB & LTGD), the interest and principal are payable in the form of cash. If the redemption is in the form of gold, then 0.20% of administration charges are levied.
Payment has to be decided at the time of deposit. Furthermore, they can choose to receive the interest payment annually or cumulative at maturity during the time of deposit.
- Nomination Facility
This scheme also allows the nomination facility where the nominee for the account in a single name in an individual capacity.
- Premature Withdrawal
One can also opt for premature withdrawal under this scheme.
STBD – premature withdrawal is allowed after 1 year lock-in period on an applicable interest rate
MTGD – premature withdrawal is allowed anytime after 3 years with a penalty on interest.
LTGD – premature withdrawal is allowed anytime after 5 years with a penalty on interest.
Who can invest in SBI Gold Deposit Scheme ?
Resident Indians of categories such as individuals, proprietorship and partnership firms, HUFs (Hindu Undivided Family),mutual funds/exchange-traded funds registered under Sebi (Securities and Exchange Board of India) and companies, charitable institutions or any other entity owned by Central Government or State Government are eligible to invest in SBI’s scheme.
How much Interest you can Earn on Gold Deposit ?
Under short-term bank deposits, interest of 0.55 per cent per annum is available for one year, while for a period of 2 years and above, SBI gives an interest of 0.60 per cent per annum. In the medium-term category, deposits have to be made for a period of five to seven years. In this case, you get 2.25 per cent annual interest.
Similarly, if you choose a long-term government deposit i.e. 12 to 15 years, then you will get 2.50 per cent interest. This is to be noted that in case of MTGD and LTGD, your principal will be counted as gold, but interest will be paid in Indian Rupees on March 31 every year or on maturity.
Conclusion
SBI’s Revamped Gold Deposit Scheme provides a secure avenue for individuals to monetize their idle gold assets while earning interest. With flexible tenure options and competitive interest rates, it caters to a wide range of investment preferences. Prospective investors should consider their financial goals and consult with SBI representatives to determine the most suitable deposit type and tenure.
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