What changed
RBI inserted a new sub-paragraph allowing BIS-certified jewellers/refiners meeting IBA conditions to act as GMCTAs for banks. It also amended valuation rules: gold liabilities/assets must now be converted to rupees using London AM fixing for Gold/USD rate crossed with FBIL rupee-dollar rate, plus customs duty. Minimum deposit remains 10 grams raw gold (bars, coins, jewellery excluding stones and other metals); deposits can be made at CPTC/GMCTA or, with board policy, at designated branches or directly with refiners.
What it means for you
Banks can now leverage certified jewellers/refiners as GMCTAs to mobilise gold deposits, potentially expanding reach. The new valuation method standardises gold-to-rupee conversion, impacting P&L and risk management. Gold stock held qualifies for SLR, but deposits attract CRR/SLR from credit date; interbank gold borrowing is exempt.
What you must do
- Update board-approved policy to identify designated branches for gold deposits, covering branch selection and employee training.
- Ensure monthly consolidated reporting of gold mobilised (Annex 2) and details of redemption due in next three months (Annex 3) to RBI by 7th of each month.
- Align gold valuation processes with the new FBIL-based conversion method, including customs duty addition.
- Review and onboard eligible GMCTAs (BIS-certified CPTCs meeting IBA conditions) as collection agents.
Who it affects
All Scheduled Commercial Banks (excluding RRBs) participating in GMS, Designated banks handling gold deposits, BIS-certified jewellers and refiners (potential GMCTAs), Gold depositors under the scheme
What is the new minimum deposit amount for GMS?
The minimum deposit remains 10 grams of raw gold (bars, coins, jewellery excluding stones and other metals). There is no maximum limit.
How will gold be valued under the amended scheme?
Gold liabilities and assets are converted to Indian Rupees using the London AM fixing for Gold/USD rate crossed with the FBIL rupee-dollar reference rate, plus the prevalent customs duty for gold import.
Do gold deposits attract CRR and SLR requirements?
Yes, from the date of credit of the amount to the deposit account. However, gold stock held by banks is an eligible SLR asset. Interbank gold borrowing is exempt from CRR and SLR.