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ALLAHABAD BANK GOLD DEPOSIT SCHEME

01.

Short Title : The Gold Deposit Scheme of the Bank shall be known as ALLAHABAD BANK GOLD DEPOSIT SCHEME.

02.

Eligibility : The following Resident Indians can subscribe under the Scheme.
i) An individual singly or jointly
ii) Guardian on behalf of minor
iii) Hindu undivided family
iv) Trust
v) Companies

03.

Application : Every person who is desirous of making subscription to the Scheme will have to fill in an application form prescribed by the bank.
Options : The depositor can continue the following options :
a) Option for single/multiple certificates of denominations 100 Gms/500 Gms/ 1000 Gms.
b) Option to receive interest annually (on 31st March)/on maturity (compounded)
c) Option to receive the maturity proceeds in Gold or in Rupees.

04.

Introduction : Introduction of the depositor is necessary. Further the depositor has to produce two latest passport size photographs.

05.

Type of Deposit : The Gold Deposit can be either in the form of Certificate/Passbook, Certificates will be issued in predetermined denominations and will be transferable by endorsement and delivery.

06.

Period of Deposit : The deposit may be opened for a period of 3 to 7 years.

07.

Lock in Period : Gold Deposits under the Scheme will have an initial lock-in-period of one year.

08.

Interest Rates : The rate of interest for the Deposit Scheme would be advised by the Head Office, Foreign Deptt. from time to time. Interest will be paid in Rupees only. Though the final deposit certificate is issued subsequently interest is payable on actual gold content from the date of physical deposit of scrap gold at the branch.

09.

Mode of Subscription: Gold (Bars, Coins, Jewellery, etc.) will be accepted in scrap form only without any gems/stones and not having any ornamental and antique value. For this purpose ornaments etc. will have to be crushed by the tenderer. The quantity of the scrap gold accepted under the Scheme would be a minimum gross weight of 200 grams. Identified branches will be provided with weighing scales to arrive at the gorss weight of the gold tender. The scrap gold will then be sent to the Assayer for preliminary assaying.

10.

Preliminary Assaying : The gold tendered under the Scheme will be subjected to non-destructive preliminary assaying process (caratmeter) in the presence of the depositor to arrive at the purity of the scrap gold. The preliminary assaying will be got done from the local accredited jeweller/agency as decided by the Bank. Certificate from the Assayer would be obtained regarding weight of pure gold that can be expected from the scrap gold tender. The depositor can withdraw the application after the preliminary assaying. In such a case in order to cover the expenses in connection with preliminary assaying, handling charge of Rs. 500/- would be collected from the tenderer.

11.

Issuance of Provisional Certificate : On receipt of the preliminary Assaying Report, if the tenderer is willing to deposit the gold, the branch will issue a provisional receipt. The Gold tendered by the tenderer would be kept in a box provided for the purpose along with two copies of the Provisional receipt and sealed in the presence of the tenderer. The gold so tendered would be subjected to final assaying by an Assaying Unit of bank's choice. The weight of the pure gold out of the above gold tender, as determined after the final assaying, will be final and no dispute in this regard will be entertained. The Gold deposit certificate which will be issued to the Depositor within 90 days from the date of the Provisional receipt, will contain the weight of gold in standard 995/999 fineness.

12.

Repayment : Upon maturity of the scheme, the principal value will be repaid either by way of delivery of standard 995/999 gold bars or by payment of rupees equivalent. Such an option which would be of irrevocable nature, is to be exercised by the Depositor at the time of application. If the depositor does not furnish his option then the repayment would be in rupee terms only. In case of repayment in gold terms, option has to be exercised by the Depositor at the time of application. If the depositor does not furnish his option then the repayment would be in rupee terms only. In case of repayment in gold terms the deposit receipt will have to be sent to the Deposit Accepting Branch at least 30 days prior to the date of maturity. However, in case of repayment in rupee terms it has to reach the branch 15 days prior to the date of maturity. In case of repayment of maturity value in terms of rupees, the conversion of gold into rupee shall be done on the date of maturity of the deposit at the conversion rate as detailed in clause 18. The overdue deposit will not earn any interest unless renewed. The depositor may renew the deposit at the interest rates prevailing as on the date of maturity. Renewal of principal from the maturity date of the previous deposit is permissible if renewed within 2 months of the maturity date.

13.

Payment of interest : Payment of interest on gold deposit will be effected only in rupee terms either annually or at maturity as opted by the depositor at the time of opening the account. The interest will be calculated on the pure gold weight as shown in the final certificate. Though the final deposit certificate is issued subsequently, interest is payable from the date it was tendered at the Branch. Wherever the option to avail the interest annually is exercised, the first payment of interest will be made on 31st March irrespective of the due date, provided the deposit has completed at least one month. The subsequent payment of interest will be made on 31st March every year till maturity. Valuation of gold in rupee terms for the purpose of payment of interest will be done on the due date of the conversion rate as detailed in Clause 18. Customs duty as prevalent at the time of payment of interest would be added to the above value.

14.

Premature encashment : Premature closure of deposit after the expiry of lock-in-period of one year will be considered either in terms of gold or in rupee equivalent to the price of gold as per value at the conversion rate as detailed in clause 18 subject to levy of penalty. For the purpose of computation of interest on premature encashment, interest from the date of deposit will be recalculated at the revised interest rates. The weight of gold so arrived will be converted into Indian rupee as per the conversion rate detailed in Clause 18.
The penalty to be levied on the interest element would be as under :

PERIOD		PENALTY ELEMENT
a)	Above one Year but less than two Years.	1 % Penalty on Three Year deposit rate Prevailing on the date of deposit + Swap Charges
b)	Two Years and above but less than three years	0.50% Penalty on Three Year deposit rate prevailing on the date of deposit + Swap Charges
c)	After three Years	0.50% Penalty on Three Year deposit rate prevailing on the date of deposit + Swap Charges

The interest will be paid for the period for which the deposit remained with the Bank after deducting the Penalty as indicated above. In case of premature withdrawals of deposit with annual interest payment terms, the amount of excess interest paid if any will be recovered from the depositor/holder or adjusted out of the principal quantity of gold as decided by the Bank. For premature closure, prior notice of 15 days would be necessary if the repayment is in rupee terms. The notice period would be 30 days if the repayment is in terms of gold.

15.

Nomination : Nomination facility will be available when the deposit is in single name in individual capacity. In case of deposits in HUF/Trusts/Company, nomination will not be permiss!ble. In case of deposits in Joint Names on former or survivor basis, the survivor will be the deemed nominee. Nomination will automatically lapse upon transfer of the certificate.

16.

Transferablity : The gold deposit certificate is transferable by endorsement and delivery. The transfer will have to be registered with the Deposit Accepting Branch by the transfree. No transfer will be registered during the 30 days immediately preceding the date on which interest payment falls due. No transfer will be accepted during the last 60 days preceding the date of maturity.

17.

Loans against Gold Deposit : Rupee Loans are permitted against the collateral security of the gold deposit/certificate to the depositor/ holder.

18.

Valuation : The valuation for the purpose of conversion of gold into rupees for payment of interest/maturity proceeds etc. will be done taking into account the following factors :
a) London A.M. fix for Gold-USD rate. If it is not a business day in London then the immediately preceding London AM fix rate will be reckoned.
b) Rupee-USD rate
c) If the due date happens to be a holiday in Mumbai then the above rates as prevalent on the preceding working day will be reckoned.

19.

TAX EXEMPTION :
a) Exemption of interest earned on gold deposit from Income Tax
b) Exemption of value of assets deposited from Wealth Tax
c) Exemption from Capital Gains made on the gold deposit through trading or at redemption from Capital Gains Tax.

20.

List of Branches authorised to accept Gold Deposits :
The scheme is available on tap and the gold deposits would be accepted at the following branches
01. Mumbai Fort Branch
02. Mumbai Kalbadevi Road Branch
03. Calcutta International Br.
04.Chennai International Br.
05.New Delhi International Br.
06.New Delhi Parliament St. Br.
07.Bengalore KG Road Br.
08.Amritsar
09.Bhopal T T Nagar Br.
10.Secunderabad
11.Lucknow
12.Ludhiana Industrial Fin. cum Int. Br.
13.Madurai Annanagar Br.
14.Cochin
15.Guwahati
16.lndore
17.Jaipur
18.Patna
19. Varanasi Chowk
20.Bhubaneswar
21.Meerut Cantt.
22.Ramanreti
23.Haridwar
24. Trivandrum
25. Vijayawada
26.Ahmedabad SP Nagar