Amendment in Gold Deposit Scheme to to bring privately held stock of gold in circulation

Gold Deposit Scheme, 1999 – Amendment in Notification No. GSR 634(E), dated 14-9-1999

Notification No. GSR 46(E) [F. No. 7/32/2012-BOA] dated 24-1-2013

The Central Government, with a view to bringing privately held stock of gold in circulation, reduce the country’s reliance on import of gold and providing its owners with some income apart from freeing them from the problems of storage, movement and security of gold in their possession, had notified Gold Deposit Scheme, 1999 on 14th September, 1999. With a view to also enable Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations to deposit part of their gold and to make the scheme more attractive for individuals to deposit their idle gold, with the banks under the scheme, the Central Government hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Economic Affairs), dated the 14th September, 1999 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), number G.S.R. 634(E), dated the 14th September, 1999, namely:-

In the said notification in paragraph 2,-

for sub-paragraph (ii), the following shall be substituted, namely :-

“(ii) “Gold Certificate” means the final receipt, in dematerialized form or otherwise, issued to a subscriber, of the Scheme after the gold tendered by him has been assayed as per Guidelines issued by the Reserve Bank and accepted as deposit by a designated bank”;

for item (d) in sub-paragraph (iv), the following shall be substituted, namely :-

“(d) a Trust including Mutual Funds/Exchange Traded Funds registered under Security and Exchange Board of India (Mutual Fund) Regulations”; and

for items 1, 3(ii) and 7 in sub-paragraph (vi), the following shall respectively be substituted, namely :-

“1. Who can operate the Scheme. – All designated banks may operate the Scheme as per Guidelines issued by the Reserve Bank.

3. Procedure for making application for subscription of Gold:

(ii) After the Gold has been assayed, if required as per Guidelines issued by the Reserve Bank, the designated bank shall accept the Gold and at the option of the subscriber shall issue (a) Gold Certificate or (b) a Statement of Account or (c) a Passbook to the subscriber.

7. Transfer of Gold Certificate: - The Gold certificate shall be transferrable by endorsement and delivery. In case of certificates issued in dematerialized form, the depository rules for transfer would apply.”