Centre unveils Gold Monetisation Scheme with 2.20-2.25% Interest

As per the promises made by PM Narendra Modi during his ‘Mann Ki Baat’ address, the centre has launched the Gold Monetisation Scheme through a RBI notification. Here are the key features of the scheme:

* Interest rate on Medium and Long Term Government Deposit (MLTGD) are 2.25 per cent and 2.20 per cent, respectively.

* Tenure of medium term would be 5-7 years, while long term would have 7-12 years.

* Deposits under MLTGD would be accepted by designated banks on behalf of the central government.

* The Gold Monetisation Scheme is aimed at tapping part of an estimated 20,000 tonnes of idle gold worth about Rs 5,40,000 crore into the banking system.