SBI GOLD DEPOSIT SCHEME (GDS) an ideal deposit plan for HNIs/Trusts etc.
SBI Gold Deposit Scheme (GDS) is in the nature of a fixed deposit in gold. The customers can deposit their idle gold under GDS which will provide them safety, interest earnings, tax benefits and a lot more. Under this scheme, you can deposit minimum 500 gram of gold with SBI and maximum as much as you want. Many Temples and trusts in India deposit literally hundreds of KGs of gold every year with SBI. Once you deposit your gold with SBI, The gold deposited is melted, assayed (tested) and minted (coined) at the India Government Mint (IGM) before the Gold Deposit Certificate is sent to the depositor within 90 days from the day the gold is deposited (The expenses incurred in this connection will be borne by the bank). It will indicate the weight of pure gold in the gold deposited, in 999 fineness. However, a provisional receipt is issued by the bank immediately upon receiving the deposit. With the help of the certificate, the depositor can claim the gold upon maturity of the deposit (alternatively, the depositor can claim back the INR equivalent of gold deposited at prices ruling on the day).
You will not get your jewellery back in the same form what you deposited. SBI melts the deposited gold and check the purity and then converts it into gold bars. Depending on the purity of the gold you deposited SBI send you a gold deposit certificate within 90 days. The Bank bears all expenses associated with this process. The gold is returned in bar/bullion or equivalent cash. If you deposit in bar or bullion, the Scheme is more beneficial.
However, unlike the regular deposits, interest here is calculated in grams and not in rupees. Thus, an investment of 500 grams of gold for three years shall earn 5 grams of gold as interest per annum, compounded annually. At the end of the maturity term, the interest so earned shall be converted into rupee equivalent of gold then and paid to the investor like other bank fixed deposit
For the principal investment, investor will have an option to claim back pure gold (0.999 purity) or cash equivalent of gold as on that day. The scheme is also attractive from tax perspective as the interest earned as well as tax on any capital gains arising from rise in price of gold after maturity is exempt from tax. Gold so deposited has also been exempted from wealth tax.
Main features of GDS are as follows
| Purpose | - To mobilize the idle gold in the country and put it into productive use.
- To provide the customers an opportunity to earn interest income on their idle gold holdings.
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| Eligibility | Any Resident Indian of the following categories: (i) Individuals, singly or jointly (as Former or Survivor) (ii) HUFs (iii) Trusts (iv) Companies |
| Minimum Quantity | 500 gms (gross) (No upper limit for deposit) |
| Period of deposit | 3 yrs,4 yrs or 5 yrs |
| Rate of Interest & Payment | - The current interest rates w. e f. 01.09.2010 are: 0.75% p.a. for 3 years, 1.00% for 4 years and 1.00% for 5 years.
- Interest is calculated in Gold currency (XAU) and paid in equivalent rupees.
- Interest rate is subject to change.
- Option for Interest Payment: Non-Cumulative (on 31st March) every year or Cumulative (On Maturity)
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| Acceptance of gold | - Gold i.e. Gold bars, Coins, Jewellery etc. will be accepted in scrap form only.
- Customers to submit Application Form, Identification Proof, Address Proof and Inventory Form.
- Provisional Receipt issued at the time of acceptance of gold.
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| Issue of Gold Deposit Certificate | - Gold Deposit Certificate will be issued by Nodal Branch (i.e. Bullion Branch, Mumbai) after the gold is melted, assayed and minted at India Govt. Mint (IGM).
- The certificate will be issued for pure gold contents (i.e. in 999 fineness).
- Multiple certificates (max 5) can be issued.
- Gold Deposit Certificate (GDC) will be sent to the depositor within 90 days from the deposit of gold.
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| Effective Date | Date of assay certificate of IGM or 30 days of receipt of gold whichever is earlier. |
| Nomination facility | Available for deposits in single names in individual capacity. |
| Transferability | Transferable by endorsement and delivery. Transfer to be noted with Nodal Branch. |
| Repayment | Option to take repayment of principal either in gold or equivalent rupees as on the date of maturity. |
| Premature payment | Premature payment permitted after a lock-in period of 1 year with a penalty on applicable interest rate |
| Renewal | Can be renewed any time after maturity provided the renewal is for a future period for the term and interest rate as available on the date of maturity |
| Loan facility | Rupee loans available at any branch of SBI up to 75% of the notional value of gold. |
| Tax benefits | Exemptions from Income Tax, Wealth Tax and Capital Gains Tax available. |
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| Designated SBI Branches for acceptance of gold: |
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| Agra Main | Chennai, T. Nagar | Kanpur Main | Raipur |
| Ahmedabad Main | Coimbatore | Kolkata Main | Rajkot |
| Amritsar | Cuttack | Lucknow Main | Ranchi |
| Bangalore Main | Dehradun Main | Ludhiana | Secunderabad |
| Baroda Main | Darbargadh (Bhavnagar) | Madurai | Shivaji Park, Mumbai |
| Belgaum | Ernakulam | Mangalore | Surat |
| Bhopal Main | Guwahati | Meerut Cantt | Tirupati |
| Bhubaneswar Main | Gwalior | Moradabad | Thrissur |
| Bullion Branch, Mumbai | Howrah | Mumbai Main | Tirivananthapuram |
| Burdwan | Hyderabad Main | Nagpur Main | Varanasi |
| Calicut | Indore Main | Panaji | Vijayawada |
| Chandigarh Main | Jaipur Special | Patna Main | Vishakhapatnam |
| Chandni Chowk Delhi | Jallandhar Main | PBB, New Delhi | |
| Chennai-AnnaSalai | Jammu | Pune Main | |
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