Notification (July 2021)

Notification

FOR THE JULY-SEPTEMBER QUARTER, THE GOVERNMENT KEEPS THE INTEREST RATE ON SMALL SAVINGS SCHEMES UNCHANGED

For the quarter ending September 30, 2021, the government has decided to keep interest rates on small savings schemes unchanged. The government has kept interest rates on several post office programs such as the Public Provident Fund (PPF), National Savings Certificates (NSC), Sukanya Samriddhi Yojana (SSY), and others constant for the fifth quarter in a row.

This means that PPF and SSY investors will continue to earn the same rate of interest as they did in the quarter ending June 30, 2021. The same interest rates will be paid on new investments into these programs as they were in the preceding quarter. The finance ministry revealed this in a circular dated June 30, 2021. PPF will continue to yield 7.10%, NSC will earn 6.8%, and Post Office Monthly Income Scheme Account would earn 6.6 %, according to the ministry circular. 

TO READ OFFICIAL NOTIFICATION CLICK HERE

REPAYMENT OF GOLD METAL LOANS

Nominated banks permitted to import gold and designated banks participating in the Gold Monetization Scheme, 2015 (GMS) can provide Gold (Metal) Loans (GML) to jewelry exporters or domestic gold jewelry producers, according to current instructions. On the due day, these loans are repaid in INR, which is equal to the value of the gold borrowed. It was decided as follows:

Banks must provide the borrower the option of repaying a portion of the GML in actual gold in lots of one kilogram or more, provided that:

  1. The GML has been expanded to include gold sourced locally and linked to the GMS;
  1. repayment is made with IGDS (India Good Delivery Standard)/ LGDS (LBMA’s Good Delivery Standards) gold sourced locally;
  1. The refiner or a central agency acceptable to the bank delivers gold on behalf of the borrower to the bank directly, without the borrower’s involvement;
  1. the loan agreement specifies the borrower’s option, acceptable standards, and the manner in which gold will be delivered for repayment;

The borrower is informed of the consequences of exercising the options upfront and in a transparent manner. Banks must appropriately include the aforesaid components into the board-approved GML policy, as well as risk management procedures. The end-use of funds lent under GML will be closely monitored by banks.

TO READ OFFICIAL NOTIFICATION CLICK HERE

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