Current Affairs Nov 2015 - Banking

News 1 - Prime Minister Launches Gold Monetization Scheme

Prime Minister Narendra Modi launched three gold related schemes named Gold Monetization Scheme (GMS), Sovereign Gold Bond Scheme (SGBS) and Indian Gold Coins (IGC). These ambitious schemes were launched to reduce the physical demand for gold in the country.

Gold Monetization Scheme (GMS) 2015

GMS 2015 will offer option to resident Indians to deposit their precious metal and earn an interest on it and will replace the existing Gold Deposit Scheme (GDS) 1999.
Scheme tagline − Earn, while you secure
Minimum deposit at any one time of raw gold in the forms of bars, coins, jewelry excluding stones and other metals is 30 grams with 995 fineness. There is no maximum limit for the deposit.
Banks will accept gold deposits under the Short Term of Bank Deposit (STBD) of 1-3 years, Medium (5-7 years) and Long (12-15 years).
Banks are free to fix the interest rates and it will be denominated in gold.
All residents can invest in this scheme but are subjected to Know Your Customer (KYC) Scheme.

Sovereign Gold Bond Scheme (SGBS) 2015

Scheme tagline − Invest wisely. Earn Safely.
RBI on behalf of Union Government will issue the Gold bonds in the denominations of one gram and its multiples.
Seeks to shift part of physical gold in form of bars and coins for investment into Demat (Dematerialized) gold bonds in order to reduce the demand for physical gold.
8 years is maximum tenure.
Minimum investment − 2 grams of physical gold; Maximum investment − 500 grams.

Indian Gold Coin 2015

It is Indian’s first ever Indian gold coin and bullion to be officially issued by Union Government.
The gold coins will bear national emblem Ashok Chakra on one side and Mahatma Gandhi’s engraved image on the other side.
Available at − 125 Metals and Minerals Trading Corporation (MMTC) of India outlets across the country. These coins and bullion are easily liquidated.
The coins will be available in denominations of 5 and 10 grams and a 20-gram bullion.

News 2 - SBI has announced partnership deal with Emirates NBD

Emirates NBD, a leading UAE-based bank has announced a partnership deal with State Bank of India to help NRI customers in the Gulf to carry out their remittances instantly and more conveniently. The partnership will allow fund transfers to SBI bank accounts across India in 60 seconds at zero fees. Emirates NBD, currently has existing tie-ups with HDFC Bank, ICICI Bank and Axis Bank in India. With this partnership, the bank’s Non-Resident Indian (NRI) customers, who also bank with SBI can now avail themselves of the fastest remittance service in the UAE a lot more easily than before.