Gold Monetisation Scheme: now earn 2.25-2.50% interest on the yellow metal

Entities participating in Gold Monetisation Scheme can earn up to 2.50% interest rate on their idle gold.

Interest rate on Medium and Long Term Government Deposit (MLTGD) are 2.25% and 2.20%, respectively, according to a notification issued by Reserve Bank of India (RBI) on Tuesday.

The tenor of medium term would be between 5-7 years while long term would for 12-15 years tenure.

The deposit under MLTGD category will be accepted by the designated banks on behalf of the central government.

The receipts issued by the Collection and Purity Testing Centre (CPTC) and the deposit certificate issued by the designated banks shall state this clearly.

Also read: All you need to know about the Gold Monetisation Scheme

The government had in September cleared the gold monetisation scheme aimed at tapping part of an estimated 20,000 tonnes of idle gold worth about Rs 5,40,000 crore into the banking system.

The gold received under MLTGD will be auctioned by the agencies notified by the government and the sale proceeds will be credited to government's account held with RBI, it said

Reserve Bank of India will maintain the Gold Deposit Accounts denominated in gold in the name of the designated banks that will in turn hold sub-accounts of individual depositors, it added.