RBI orders banks to immediately pay interest under GMS

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IANS | 18 Oct, 2017
The Reserve Bank of India (RBI) on Tuesday advised commercial banks to "immediately" pay interest due on the Gold Monetisation Scheme (GMS), 2015.

"It has been decided that reimbursement of payments made by banks, relating to Medium and Long Term Government Deposit (MLTGD), will be made by Central Account Section (CAS), Nagpur, RBI. Accordingly, banks are advised to pay immediately the interest amount already due to the depositors," the central bank said in a statement here.

As per the notification, after making payments, the banks can raise the claim to government through the central bank.

Under the Gold Monetisation Scheme, launched by the government in 2015 to curb imports, the yellow metal can be deposited with a designated bank in the account of the central government either for a medium term of 5-7 years, or a long term period of 12-15 years.

The annual rate of interest on medium term deposits is 2.25 per cent, and on long term deposits is 2.50 per cent.