India tightens gold deposit program due to soaring prices.

India has partially suspended a program that encouraged households and organizations to deposit idle gold to earn interest.

India has partially suspended a program that encouraged households and organizations to deposit idle gold to earn interest.

The gold mobilization program, launched in 2015, includes gold deposits with terms of 1-3 years, 5-7 years, and 12-15 years.

The Indian Ministry of Finance announced that services for gold deposits with terms of 5-7 years and 12-15 years have been discontinued. (Illustrative image)

Late on March 25, the Indian Ministry of Finance announced that the provision of services for gold deposits with terms of 5-7 years and 12-15 years had been discontinued due to changing market conditions and the practical effectiveness of the program.

Accordingly, banks can continue to offer short-term gold deposit services based on commercial viability.

This move could help ease the government 's future financial obligations and limit the risks associated with gold prices. While interest on short-term deposits is paid by banks, interest on medium- and long-term deposits is paid by the government.

Gold prices, often seen as a hedge against geopolitical and economic instability, have risen more than 15% this year due to escalating geopolitical tensions and uncertainties surrounding US tax policy.

The Indian Ministry of Finance also confirmed that existing gold deposits will remain in effect until maturity.

The Reserve Bank of India has revised its master guidance on the program to reflect these changes.

Source: https://congthuong.vn/an-do-siet-chuong-program-ky-gui-vang-do-gia-tang-cao-380101.html