The tenure of Medium Term Government Deposit (MTGD) is between 5-7 years and Long Term Government Deposit (LTGD) between 12-15 years.
This initiative by the government is expected to inspire temple trusts to depositing gold under the gold monetization scheme, as many temple trusts have significant amounts of gold with them. The redemption will attract an administrative charge of ‘0.2 percent’ of the notional redemption amount to be levied from the depositor in Indian rupees. The interest applicable on the scheme will be calculated as per the value of gold in Indian rupee at the time of deposit and will be paid in cash.
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