Gold Deposit Scheme (GDS): Salient Features Include-All Designated Banks can Operate GDS as per Guidelines Issued by RBI; Banks Issue a Passbook/Certificate to Depositor; Resident Indians Can Invest etc.
The Central Government, with a view to bring privately held stock of gold in circulation, to reduce the country’s reliance on import of gold and to provide its owners with some income apart from freeing them from the problems of storage, movement and security of gold in their possession, had notified the Gold Deposit Scheme (GDS) on September 15, 1999. Some of the salient features of the scheme inter-alia include the following:
The Government has no proposal to limit deposits under the proposed GDS to 100 grams.
The gold garnered through GDS is mobilized as gold loans to domestic jewellery industry. GDS aims to reduce the country’s reliance on import of gold and curb the Current Account Deficit.
This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today. (Source- PIB)