Banks can pay interest in gold
Amount of interest rate to be given is proposed to be left to the banks to decide
New Delhi: Bank will open a “Gold Savings Account” and credit the quantity of gold in the customer’s account, when customer produces the gold deposit certificate. The bank will commit to paying an interest to the customer which will be payable after 30/60 days of opening of the Gold Savings Account. The amount of interest rate to be given is proposed to be left to the banks to decide. Both principal and interest to be paid to the depositors of gold, will be ‘valued’ in gold.
“For example if a customer deposits 100 gm of gold and gets 1 per cent interest, then, on maturity he has a credit of 101 gm,” said the draft. The customer will have the option of redemption either in cash or in gold, which will have to be revealed at the time of making the deposit.
The tenure of the deposit will be minimum one year and with a roll out in multiples of one year. Like a fixed deposit, breaking of lock-in period will be allowed. “The customers will get exemption from capital gains tax, wealth tax and income tax after due examination,” said the draft.