What changed
The government notification dated January 24, 2013, enables Mutual Funds and Exchange Traded Funds registered under SEBI to deposit gold under the scheme. RBI has modified the guidelines: gold certificates can now be in dematerialised form; fire assay is waived for LBMA-compliant gold from these funds; trusts including MFs/ETFs are eligible depositors; maturity range is now 6 months to 7 years; and banks no longer need prior RBI approval to launch the scheme, but must report monthly consolidated gold mobilisation.
What it means for you
Banks can now tap into institutional gold holdings from MFs and ETFs, potentially increasing gold mobilisation volumes. The reduced maturity floor from 3 years to 6 months makes the scheme more attractive to short-term depositors. Removing prior RBI approval speeds up scheme launches, but monthly reporting adds compliance burden.
What you must do
- Update your Gold Deposit Scheme product documentation to reflect the new 6-month to 7-year maturity range.
- Set up processes to accept gold deposits from SEBI-registered Mutual Funds and ETFs, including verification of LBMA compliance and certificates.
- Implement monthly consolidated reporting of gold mobilised across all branches in the revised format provided by RBI.
- Ensure your gold certificate issuance system can handle dematerialised certificates and associated depository rules.
Who it affects
All Scheduled Commercial Banks authorized to deal in gold, Mutual Funds and Exchange Traded Funds registered under SEBI, Resident Indians (Individuals, HUF, Trusts, Companies) as depositors
What is the new minimum maturity for gold deposits under the scheme?
The maturity period has been changed from the earlier 3-7 years to a range of 6 months to 7 years.
Do banks need RBI approval to introduce a Gold Deposit Scheme now?
No, prior RBI approval is no longer required. Banks must only inform RBI of the scheme details and branches, and report monthly consolidated gold mobilisation.
Can Mutual Funds deposit gold under this scheme?
Yes, Mutual Funds and Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations can now deposit gold, subject to LBMA good delivery norms and a certificate acceptable to the bank.