RBI to count short-term gold deposits as CRR, SLR

Mumbai: Reserve bank of India (RBI) said on Thursday it will allow lenders to count short-term bullion deposits under the gold monetisation scheme as part of their cash reserve ratio or statutory liquidity ratios, increasing the appeal of the plan for the sector.

The measure was part of the Reserve Bank of India's guidelines for the gold scheme, which is intended to lure Indian households to deposit gold at lenders in exchange for interest rate payments.

Among the details, the RBI said it will allow banks to take a minimum deposit of 30 grams of gold from individuals, who will be allowed to place the bullion for time periods ranging from one-year to 15 years.