Reliance Money Precious Metals. MY GOLD PLAN FAQs About the Company and Structure. A Reliance Capital Company

Transcription

1 MY GOLD PLAN FAQs About the Company and Structure 1. What is Reliance My Gold Plan? Reliance My Gold Plan ( R-MGP ) is a product offered by Reliance Money Precious Metals Private Limited (RMPM) to enable systematic purchase of gold by customers for their personal requirements. Under the plan a customer would remit / pay a fixed sum of money on a monthly basis for a fixed period of time to RMPM, as advance consideration towards purchase of the contracted value of gold. The customer receives credit for accumulations, of gold purchased by RMPM, at periodic intervals through a Daily Averaging Methodology. The sale shall be completed only upon payment of all the monthly installments and other charges as may be specified. R-MGP accumulated gold grams can be converted into gold coins at the end of the tenure from multiple specified outlets across the country. R-MGP is neither a financial product nor a deposit but a method of purchasing gold through periodic accumulations for the personal needs of the customer. Neither RMPM nor World Gold Council (WGC), or any of their associates, offers any investment advice or promises /forecasts any assured return through R-MGP while promoting the product. 2. Can you elaborate on the partnership between World Gold Council and Reliance Gold - Reliance Money Precious Metals (RMPM)? How much have each partner invested in this product? Our partnership with World Gold Council is not new and we have been jointly making Gold Coins accessible to the masses PAN India through India Post Offices and our own distribution strength. Reliance experience in the gold business and WGC research on Indian Consumer both indicated a need for a simple gold accumulation product which is affordable, is safe and can be easily fulfilled. WGC is the marketing associate for R-MGP. It will assist RMPM in marketing and promoting R-MGP. RMPM will provide the R-MGP product and is responsible for day-today management which includes procurement of gold, dealing with the service providers, servicing customers, distributors and fulfillment partners pan India. Marketing efforts are shared, and we are confident that the product will be an efficient solution to the customers looking to accumulate gold. 3. Why a separate company is required for R-MGP As you know we have designed the product keeping the security of the customer in mind. We have a Security Trustee who ensures that even penny paid by the customer is backed with physical gold, there is a custodian with whom the gold is stored, the gold stored is insured and there is a reputed service provider who ensures that the customer id is created and gold grams are allotted in time to the customer as per the terms and conditions. To ensure that the customer s interest is not compromised with any other business, there was a need to form a separate company and hence Reliance Money Precious Metals was formed. Although MY GOLD PLAN is the sole

2 product promoted by the company as of now, there would be more products that we would be launching in the near future. 4. What is the role of the Security Trustee The Security Trustee is entitled to act on behalf of the customers and ensure that the interests of the customers are protected. The security Trustee will have a first and exclusive charge on the gold associated with accumulations held by the customers. 5. Is there any regulator or Grievance redressal mechanism? MY GOLD PLAN is neither a Collective Investment Scheme nor a Deposit. Thus this plan doesn t fall under the purview of SEBI or RBI. Hence there is no regulator for this product offering. To ensure that the customer interest is of foremost importance, a Security Trustee has been appointed for MY GOLD PLAN. For any grievances the customer can approach the Security Trustee. 6. Is the gold associated with my accumulations kept in safe custody? Yes, the gold associated with the accumulations credited in your account is kept in safe custody with a Safe Keeper in accordance with the terms of offer mentioned in the product brochure. Lemuir Secure Logistics Pvt. Ltd. has been appointed Safe Keeper by RMPM. Lemuir is one of the largest service providers for gold import handling, vaulting and distribution in India. 7. What will happen to the gold associated with accumulations in my account, in the unlikely event of RMPM going into liquidation? The gold associated with the accumulations in your account is separate from the other assets of RMPM. IDBI Trusteeship Services Limited has been appointed by RMPM as the Security Trustee who will act for and on behalf of the customers. The gold purchased by RMPM and associated with the accumulations in Customer Accounts is transferred to the Safe Keeper appointed by RMPM for the product. When RMPM is required to sell the gold and transfer title to the customer, the requisite quantity of gold will be removed from the Safe Keeper and delivered to the customer through either a Coin Fulfillment Partner or a Jewellery Fulfillment Partner depending on the choice of the customer. Since the Safe Keeper has a first and exclusive charge over the gold over other commercial creditors till the time of Fulfillment and the gold is separate from the other assets of RMPM, any unlikely adverse event happening to RMPM should not affect the gold associated with the accumulations in your account 8. Are there any other partners involved in My Gold Plan? Reliance Money Precious Metals is the central entity which manages the product and World Gold Council is the Marketing Associate. Apart from this there are no other partners. The other entities involved are given below: 1. Lemuir Logistics who is our custodian with whom the gold grams allotted to the customers are stored

3 2. IDBI Trustee who is the trustee who overviews the entire operations and ensures that the gold grams allotted to the customers are backed by physical gold and the customer gets the gold coins/jewellery upon submission of fulfilment request 9. How will the product benefit Reliance Gold and World Gold Council? World Gold Council is a market development organization for the gold industry and the global voice of authority for gold. It is a non-profit organization whose sole purpose is promotion of gold across the world. Through this product we aim to provide access to good quality gold to the masses in India and make accumulation of gold accessible, secure and transparent. About the Product positioning and conception 10. Is there a need for such a product in India, especially when similar scheme are already been offered by family jewellers / retail jewellery chains? The market for Physical Gold in India is highly fragmented with each jeweller offering their own schemes. The problem is that the relationship of the customer with the jeweller is purely based on trust and there is very little transparency. Our study reveals that there is a huge under carratage in the gold sold in India i.e. 22 Karat Gold sold may actually be 18 Karat or 20 Karat. Moreover the jewellers offer redemption only in the form of jewellery when a customer subwscribes to a jewellery scheme and the customer doesn t pay the average price but the price of gold at the time of redemption so it is more of a financing scheme. MGP is a unique product through which we will buy physical 24k gold on behalf of the customer everyday. The product is completely transparent and the customer know for sure how his/her money is being utilized. 11. What kind of approvals you have received from Indian Government and/or RBI to launch this Product? As per the Sale of Goods Act, 1930 Section4, a Contract of Sale of Goods is where The seller transfers or agrees to transfer the property in goods to the buyer, for a money consideration called the price Thus the expression Contract of Sale of Goods includes both a sale as well as Agreement to sell. An Agreement to Sell is where the ownership of Goods is to be transferred at a future time or subject to some conditions to be fulfilled later on. Under Reliance My Gold Plan, 1. Reliance Money Precious Metals purchases Gold through RBI nominated bullion agencies for every subscription made by the customer via a Daily Averaging Methodology. 2. However the transfer of ownership doesn t take place at the time of subscription 3. The transfer of ownership takes place at the time of fulfillment wherein the customer has to pay the VAT and other applicable State taxes/levies apart from other fulfillment related payments like making charges and round-off charges for the residual grams.

4 Thus Reliance My Gold Plan is not a Collective Investment Scheme Doesn t come under the purview of SEBI Section 11AA of SEBI Act defines a collective investment scheme as any scheme or arrangement offered by a company under which payments made by investors are pooled and utilized to receive profit, income, produce or property, and is managed on behalf of the investors. Reliance My Gold Plan only provides the means to do an advance purchase of Gold for sale at a future date. No yield or returns are promised under the plan and the customer has to compulsorily take delivery of the gold accumulated under his/her RMGP Account. Thus, Reliance My Gold Plan is not a deposit Doesn t come under the purview of RBI Reliance My Gold Plan purchases gold for every subscription made by the customer via the Daily Averaging Methodology. Hence RMPM is doing advance purchase of gold and storing the gold with the safekeeper for delivery at a future date. The plan promises no yields or returns for the money collected from the customer. Hence the subscription cannot be termed as a deposit. 12. What is the communication objective for My Gold Plan? The communication objective is to establish Saving in Gold & Affordability Buy Gold everyday 13. Do you anticipate any fraud selling of this product? There is post sale call verification with the customer. This process is to take care of a fraudulent transaction. We have not encountered any false sale in the preceding soft launch period. 14. Is MGP better than e-gold or ETF or FoF? If yes, Why? Both products address a different client group and have different requirements. It may not be ideal to compare them against each other. E-GOLD and ETF require Demat accounts are basically aimed at traders and investors who wish to benefit from the rising prices of gold and expect a particular financial return. FoF is a mutual fund investment which is again aimed at investors who expect a financial return. My Gold Plan is a product which promotes savings in gold and is aimed at fulfilling the physical gold needs of customers. About the product details 15. What are the eligibility criteria for R-MGP? Any adult Resident Indian, Non Resident Indian ( NRI ), Minors (wherein parents / lawful guardians are applying on behalf of Minors) & Hindu Undivided Family ( HUF ) can enroll for R-MGP. 16. Can a minor enroll into R-MGP? Yes, an account can be opened in the name of the minor. Proof of date of minor and Know Your Client ( KYC ) proof of the guardian has to be submitted along with application form.

5 17. What is the Purity of Gold offered under MY GOLD PLAN? MY GOLD PLAN offers 24 Karat Gold of 995 Fineness. 18. What is the difference between Fineness, Purity and Karat? Fineness: Fineness is the measure of the purity of the metal that was used to make the coin. It is usually expressed as parts per Percent Purity: Percent Purity is the measure of the purity of the metal which is expressed in Percent terms i.e. parts per 100. Karat: Gold Purity is usually measured in Karats ranging from 18 Karat to 24 Karat. In terms of Purity 18 Karat translates to 75% purity and in terms of fineness it translates to 750 fineness. The relation between Karat and Fineness is described below: 1 Karat = 1000/24 Fineness. So, 1 Karat represents 41.6 Fineness. Hence 24 Karat represents anything between 958 Fineness and 1000 Fineness. So, a Gold Coin with 960 parts of Pure Gold and balance 40 parts of Copper is also 24 Karat Gold and a Gold Coin with 980 parts of Pure Gold and balance 20 parts of Silver is also 24 Karat. 19. Which are the agencies which certify Gold in India? Government of India has identified Bureau of Indian Standard as the sole agency in India to operate the BIS Hallmarking Scheme. The BIS Hallmarking Scheme has been aligned with International criteria on hallmarking (Vienna Convention 1972). A Hallmark, consists of five components i.e. BIS Mark, the Fineness number (corresponding to given carratage), Assaying and Hallmarking Centre's Mark, Jeweller's identification Mark and year of Marking denoted by a code letter and decided by BIS (e.g. code letter `A' was approved by BIS for year 2000, `B' being used for the year 2001 and `C' for 2002 and 'J' for 2008). The marking is done either using punches or laser marking machine. Some manufacturers also issue Assay Certification which can be obtained through Assay Offices. Assay offices are institutions set up to assay (test the purity of) precious metals, in order to protect consumers. All R-MGP Gold Coins shall be BIS certified. 20. How does the Daily Averaging Concept offered under MY GOLD PLAN work? Each subscription amount received from the customer is divided into 20 equal Daily Purchase Amounts and Gold Grams up to 4 decimals are allotted by dividing each Daily Purchase Amount by the Gold Price (inclusive of Administrative Charges) on each business day.

6 21. What is the benefit of Daily Averaging Concept? By allotting grams on the basis of Daily Averaging the price volatility of Gold is minimized thereby insulating the customer from the price volatility. 22. What are the various charges under R-MGP Administrative charges shall be levied on every accumulation by effecting a mark-up of 1.5% on the Daily Gold Price. This is a non-refundable fee paid towards setup/ administration costs There is a nominal pre-termination charge of 2.5% of the subscription amount which is charged in case the customer fulfils post the lock-in period but before completing the minimum tenure of 1 year. Moreover this charge shall be waived off in case the customer is willing to purchase gold worth a minimum of 12 months commitment. Safe Keeping Charges of 0.5% per annum on the total subscription amount. The charge is applicable only in case the customer does not take delivery of gold coins within 60 days from the date of issue of Fulfillment Voucher or the date of completion of chosen tenure whichever is earlier. 23. What are the making charges on Coins? The making charges include the labor charge, packaging charge and the cost of assay certification. Please find below the coin making charges for coins of various denominations: Denomination 0.5 gm 1 gm 2 gm 5 gm 8 gm 10 gm 20 gm 50 gm Making Charge (Rs) Why is the Administrative Charge charged on MY GOLD PLAN price instead of the Subscription amount? Does the customer take a greater hit if the administrative charge is charged on MY GOLD PLAN price? The product has been structured in such a way that the Administrative charge is charged on the MY GOLD PLAN price instead of the Subscription amount and the terms and conditions state the same. Such an arrangement is beneficial to the customer. Consider a subscription amount of Rs and Rs to be the Gold Price. If the administrative charge were to be charged on this subscription amount then the Administrative Charge would be Rs Thus the grams allotted would be Rs / Rs = grams. If the administrative charge were to be charged on the Gold Price then the Administrative charge would be an additional Rs. 45 (Rs x 1.5%) added to the Gold Price. Thus the grams allotted would be Rs. 10,000 / Rs = You can test this by decreasing the subscription amount or by increasing the price of Gold and the customer will always be the winner.

7 25. What are the various tenures available under R-MGP? Customer can enroll into the plan with tenure ranging from 1 year to 15 years with an interval of 1 year. This tenure can be extended by the customer by submitting a renewal request form. 26. Can the plan tenure be extended? Yes. The plan tenure can be extended by submitting a renewal request form, 27. Is there any lock-in period for this plan? Yes. There is a lock-in period of 6 months from the date of initial subscription. Fulfillment of gold grams shall not be permitted during the lock-in period. 28. What is the minimum & maximum contribution amount for this plan? The minimum contribution amount for this plan at the time of application is Rs. 1,000/- and in multiples of Rs. 100/- thereafter. There is no limit on the maximum amount. 29. Can I increase or decrease my monthly contribution towards this scheme during the tenure of R-MGP? No. A customer cannot change his/her monthly contribution amount during the tenure of the plan. However you can make additional purchases of a minimum of Rs. 1000/- and in multiples of Rs. 100 thereafter. 30. Can I have a joint account for this plan? No, you cannot have a joint account for R-MGP. 31. Is nomination mandatory for R-MGP? Yes, nomination is mandatory for the plan. However, where the applicant is the guardian of a minor, the minor cannot be the nominee to the account. 32. Can I add/change nominee details or change address during the tenure? Yes. You can submit change request form to modify nomination and to modify address during the tenure of R-MGP by submitting listed proof of address as stated in the application form. Such change request forms have to be submitted at RMPM collection centres. 33. What is the benchmark for the Price of MY GOLD PLAN? Can MCX be taken as a benchmark? There is no benchmark for comparing the price of MY GOLD PLAN. MCX cannot be considered as a benchmark, since there are many differences between MY GOLD PLAN and MCX. MCX gives the prices of a futures Contract which doesn t give the landed prices by factoring in cost of logistics, insurance, safekeeping, etc. MCX doesn t give PAN India Delivery and based on the contract it gives delivery at only a few locations like Mumbai, Ahmedabad, Delhi, etc. MY GOLD PLAN gives delivery PAN India, provides Daily Averaging feature and gives the landed price of Gold.

8 34. Why is the Price of MY GOLD PLAN high? The Price of MY GOLD PLAN can be relatively higher or lower depending upon the product or contract with which it is compared. The MY GOLD PLAN price cannot be compared with MCX or NSEL E-GOLD since these products do not give the landed price of Gold. We do not recommend you to compare the MY GOLD PLAN price with the price quoted by the local jeweller since there is no guarantee of purity provided by the local jeweller. Moreover Jeweller s who run similar schemes don t back your account with Physical Gold and most of them don t even average your gold prices. 35. How is the price of MY GOLD PLAN derived? RMPM procures the Gold from RBI nominated Bullion agencies on a daily basis so as to allot grams to the customers whose payments have been realized. RMPM then flashes a PAN India Landed Price by adding the costs which are incurred on account of Logistics, Insurance, Safekeeping and Trustee s Fees. 36. Who decides the gold price for My Gold Plan? Will the price be comparable to market rates? RMPM publishes the price of gold every day and will be available on the RMGP website. This price is based on the international gold price with import duty, and administrative charges added to it. This price is comparable to the price of gold available at banks, post offices, jewelers and through various other sources. There is no standard landed price for Gold. The most critical parameters based on which there is variation in the pricing of Gold is logistics and state levies like Entry tax and Octroi which cause a price variation in gold across various parts of India. For example Pune has a 3% octroi. Apart from this there is VAT which also varies across various states. My Gold Plan provides a standard landed price of Gold and the price should ideally be compared with the gold sold by the banks. 37. The grams allotment is happening by dividing the subscription into 20 tranches for purchase of gold each business day. Would I get float on the tranches for which gold purchase is to happen at a future date? MY GOLD PLAN is a savings plan and is not a financial product. All the accounts are managed by the Security Trustee and no float is earned by RMPM on any of the customer funds. The customer funds are divided into tranches only for the purpose of daily averaging. 38. Where is fulfillment of Gold available? Coin fulfillment will be available through the Reliance Money branches PAN India as of now. RMPM is in the process of tying up with more fulfillment partners. The latest list of outlets from where Coin/Jewellery Fulfillment can happen is updated on the Website of MY GOLD PLAN. 39. Can you forecast year 1 to year 5 returns for an investor? This is purely a savings product which urges customers to save in physical gold for their future physical gold requirements like Daughter s Marriage, Wedding Anniversary, etc. Hence one should not subscribe to this plan from an investment perspective. However if you look at gold as an asset class it has given a CAGR of over 20% in the last 5 years with very little volatility in the Indian markets.

9 Account Opening and Subscription 40. Do you have Customer Relationship management program for My Gold Plan? Who own it? Yes, there is a dedicated CRM facility and a call centre for MY GOLD PLAN. RMPM owns this, since we believe that Customer Relationship is the most critical function and hence ownership needs to be taken by the central entity and it is a function which should not be outsourced. The customer is engaged right from the time he is on-boarded till the time he fulfils his gold grams accumulated in the form of gold coins or jewellery. When the customer is first on-boarded a welcome call is done to the client. The customer is also sent a welcome letter by post as well as . The customer is sent regular reminders about the payment that is due for the month and also SMS of the grams accumulated on a monthly basis. The customer can call on a toll free number where his/her queries will be answered. The customer can also send his grievances/redressals to our ID to which responses will be given within 24 hours. 41. How do I open a new R-MGP account? The customer has to submit a completely filled and signed application form along with valid acceptable KYC proof, duly self attested, and initial payment at RMPM collection centres. Subscription to Reliance My Gold Plan can also be done online by clicking the Buy Online button on our website The online application form will load where you need to fill out all the mandatory details. You also have the option of uploading scanned images of your KYC documents (valid photo ID proof, address proof and photograph). Payment can be made via convenient modes of Credit Card, Debit Card & Net Banking through the safe & secure payment gateway. 42. What are the KYC requirements? To meet the KYC requirements of R-MGP, the customer needs to submit acceptable Proof of Identity and Proof of Address. Acceptable Proof of Identity and Address (any one of the following) are as follows: Identity Proof: (i) UID (Aadhar); (ii) Passport; (iii) Voter Id; (iv) Driving Licence; (v) Identity card/document issued by Govt/Regulatory/Statutory Authorities*. Address Proof: (i) UID (Aadhar); (ii) Passport; (iii) Voter Id; (iv) Driving Licence; (v) Ration Card; (vi) Registered Lease/Sale Agrement; (vii) Latest** Bank Statement/Passbook; (viii) Latest** Utility Bill; (ix) Identity card/document with address issued by Govt/Regulatory/Statutory Authorities*. * Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to universities, Professional Bodies such as ICAI, ICWAI, Bar Council etc. ** Not more than 3 months old

10 43. Is PAN card mandatory? PAN card is not mandatory. However, in case the monthly subscription amount is greater than Rs. 50,000/- or the total subscription amount exceeds an amount of Rs. 5,00,000/- anytime during the tenure of the plan, then self attested copy of PAN card needs to be furnished. 44. Can I fulfill my KYC requirements Online? Yes. While subscribing to the plan online, you can choose the option of Upload KYC Online in the KYC details section. PAN card details and upload is mandatory as photo ID proof along with a passport size photo. A valid address proof (list available on online form) also needs to be uploaded. The acceptable formats for the scanned images are.jpeg,.tif and.pdf. 45. Can I fulfill my KYC requirements after completing my subscription online? Yes. Once you have subscribed online and received your customer ID, you can upload your KYC (PAN card, address proof and passport size photo) on the Upload your KYC page. This facility is available only to those customers who have subscribed to the plan online. Just enter your customer ID and authenticate yourself with your date of birth, registered id or mobile number. You can then proceed to upload the KYC documents. 46. In whose favour is the initial payment cheque/dd is to be made? Initial payment cheque/dd must be drawn favoring Reliance My Gold Plan Application No. <<XXXXXX> 47. How do I pay my monthly subscription? Customer can pay the monthly subscription through ECS/Direct debit for which he will have to sign an ECS/Direct Debit mandate at the time of registration. The customer can also make the monthly payments by way of Post Dated Cheques or by way of Cash mode of payment. 48. In case of post dated cheques, in whose favour should the cheques be and what are the other conditions that need to be complied with? (i) If the customer selects a tenure of 1 year, then he needs to issue 1 current dated cheque for initial subscription and 11 post dated cheques made out to Reliance My Gold Plan. (ii) The customer needs to select the option of Post Dated Cheque as the payment mode in the Monthly Subscription Details section of the application form (iii) The application number and customer name should be mentioned on the reverse of each of the cheques. (iv) All cheques need to be multi-city/payable at par CTS 2010 standard cheques, complying with standards recently announced by the RBI. (v) All cheques need to be dated either 10 th or 20 th of every month as per the monthly subscription date preference of the customer. (vi) There needs to be a gap of at least 30 days between the initial current dated cheque and the first Post Dated cheque.

11 49. Can I issue Post Dated cheques of multiple banks at the time of subscribing to the plan? You can issue post dated cheques of a maximum of 2 banks at the time of subscribing to the plan. So if you have chosen a tenure of 1 year and wish to give 5 cheques of one particular bank account then you can issue the remaining 6 cheques of one more bank account. 50. When will gold grams allotment happen in case of Post Dated Cheque mode of payment? Allotment of gold grams will happen on T+1, T being the cheque realization date into R-MGP accounts. 51. In case of Cash mode of payment, what is the process that needs to be followed? (i) Itz Cash has been brought on board as the preferred Cash Collection partner for Reliance My Gold Plan. (ii) Customers can make the payment for initial subscription via Cash by visiting the nearest Itz Cash outlet, depositing the cash and providing the application details like application number, Customer Name, amount and mobile number. (iii) The acknowledgement receipt issued by Itz Cash, application form and supporting KYC documents need to be deposited at the nearest CAMS Point of Acceptance. (iv) In case of monthly/subsequent subscriptions via the cash mode, the customer needs to select the option of Cash as the payment mode in the Monthly Subscription Details section of the application form. (v) The customer needs to visit the nearest Itz Cash outlet and quote his customer ID, amount and mobile number. (vi) The Itz Cash outlet will charge the customer a flat transaction fee of Rs.20/- plus service tax, per transaction. (vii) Upon successful payment, Itz Cash will issue a physical receipt as well as send a confirmation SMS to the customer, as confirmation of his payment towards Reliance My Gold Plan. 52. How do I locate the nearest Itz Cash outlet? (i) You can visit the Itz Cash Store locator at consumer.itzcash.com, Store Locator and enter your details like Name, e- mail Id, mobile number and Pin code. After clicking on submit, the site will display the details of the Itz Cash outlets closest to your location. (ii) You can SMS RMGP<SPACE> YOUR PINCODE to or and you will get an SMS giving details of the Itz Cash outlets closest to that Pin code. 53. When will gold grams allotment happen in case of Cash mode of payment? Allotment of gold grams will happen on T+1, T being the day of credit of funds into R-MGP accounts. The customer will get an SMS from Reliance My Gold Plan confirming credit of funds into their R-MGP account. 54. Can customers who have chosen other modes of payment make additional purchases via Cash mode at Itz Cash outlets? Yes, customers who have chosen their monthly mode of payments as ECS/Direct Debit or Post Dated Cheques can visit the nearest Itz Cash outlet and make additional subscriptions via cash to their Reliance My Gold Plan account.

12 55. If a customer visits an Itz Cash outlet on a date other than the 10 th or 20 th for the monthly subscription payment, will the payment be accepted? Yes, the payment will be accepted. 56. Can a customer discontinue their current mode of payment (for example ECS or post dated cheque) and opt for Cash mode or vice-versa? No, a customer cannot discontinue their existing mode of payment and switch to another mode in the middle of their subscription to the plan. 57. Are there any charges while making payments through Post Dated Cheques or Cash mode? There is no charge to the customer if he is making his monthly payments via Post Dated Cheques. However, for cash mode of payment, there is a flat transaction fee of Rs. 20/- plus service tax per transaction. 58. What will happen in case my ECS / Direct Debit gets rejected in any month? No accumulations will be recognized in case of ECS/Direct Debit rejections. In case of 3 consecutive ECS/Direct Debits defaults, forced closure of plan would be initiated by RMPM. 59. Is it possible to subscribe to Reliance My Gold Plan without submitting an ECS mandate? Yes, you can subscribe to Reliance My Gold Plan without submitting an ECS mandate, provided you make an initial subscription of Rs. 12,000/- or higher. You can then make additional subscriptions to the plan until the maturity of your tenure. The daily averaging feature will apply to the initial subscription payment in this case as well. 60. Can I make additional payment during the tenure? Yes. An additional payment can be made by submitting either a cheque or DD in favour of Reliance My Gold Plan Customer Id <<XXXXXX> to CAMS collection centre. 61. Can an Option be provided wherein Additional Purchases are not split into 20 purchases? Yes, there is an option of One time Allotment in the Additional Subscription Request form. If you select this option, the amount will not be split into 20 tranches, it will be deployed at one time to allocate gold grams to your Reliance My Gold Plan account. 62. How can a customer get the one-time allotment option in case of Initial or Monthly subscription? The customer cannot get the one-time allotment option in case of Initial or Monthly subscription. This option is only available for Additional Subscriptions.

13 63. Can a customer make one-time allotment of gold grams using online or cash payment modes? No, one-time allotment of gold grams cannot be made using online or cash mode. A request for one-time allotment needs to be made with the additional subscription request form (available on our website in the Quick Downloads section) indicating the customer s preference of one-time allotment along with a cheque/dd payable to Reliance My Gold Plan <Customer ID> for the amount that the customer wishes to subscribe with. 64. Is id mandatory for R-MGP? Customer should preferably mention a valid ID in the application form, as upon enrollment in the plan, the customer shall be sent a Welcome Letter, Statement of Holdings and Frequently Asked Questions on his/her ID. 65. Can I view my Statement of Holdings online anytime? Yes, it is possible to generate your statement of holdings online anytime. In order to do this, it is mandatory to register an id while subscribing to the plan. Just follow the steps mentioned below: i. Log on to and visit the Statement of Holding section under Customer Corner. ii. Click on the link where it says To receive Statement of Holding via please click here. iii. A new page will load where you need to enter your registered id and assign a password which you will use to open the encrypted attachment. iv. Your latest Statement of Holding will be sent to you at your registered id where you can see the daily and cumulative accumulation of gold grams right up till the last business day. 66. What do I do if my customer ID has not been generated? If your customer ID has not been generated within 10 business days of submitting the application, then it is likely that some of your KYC documents or ECS mandate were not received at our point of acceptance. Please visit the nearest CAMS branch, quote your application number and submit a valid photo identity proof, address proof, passport size photograph along with a duly signed ECS mandate for the appropriate tenure for successful customer ID generation. To find the nearest CAMS location, please visit How do I change/update my contact details after subscribing to the plan? If you need to change/update any of your contact details, please visit the quick downloads section of the website at and download the Change Request Form under Customer Forms Others. Fill out the form with your updated details and submit them at the nearest CAMS location. The list of CAMS locations is available at Is mobile number mandatory for R-MGP? Yes, a valid mobile number is mandatory for the plan.

14 69. What will the customer get as proof of account opening or upon payment being made by him/her? The customer will receive an SMS on his registered mobile number on generation of his customer id and a physical welcome letter containing the registration details. 70. What are the different payment modes available? For Initial Payment Cheque/Demand Draft, Cash (at Itz Cash outlets) and Online payment via Credit Card, Debit Card and Net Banking will be accepted. For subsequent monthly installments, it will be through ECS/Direct Debit or Cash (at Itz Cash outlets only). At locations where ECS/Drect Debit facility is not available we shall also accept Post Dated Cheques. Customers can also transact using Quick Pay to do additional purchases. 71. What is Quick Pay? Quick Pay is a convenient way for existing customers to make additional purchases towards their Reliance My Gold Plan subscriptions. The facility is available on -> Quick Pay. All you need to do is enter your customer ID and authenticate yourself with your Date of Birth, id or mobile number. You can also select the subscription type (Daily Averaging or One Time Allotment). Once you have entered the amount, you can make the payment online via Credit Card, Debit Card or Net Banking. The allotment of gold grams will be done on T+1 day, T being the day of realization of funds by RMPM. 72. What is ECS? ECS means Electronic Clearing Service which is offered by Reserve Bank of India at around 89 locations PAN India. The list of locations is specified in the Application Form as well as on How and when will the ECS be deducted from my nominated bank account? The 1st Monthly Installment will be triggered only on 10th or 20th of the month as selected by you after considering a gap of 30 days from the date of initial subscription. For example, if your initial subscription was done on 12th July, 2013 your monthly ECS date is 10th of every month, then your first ECS will be debited on the 10th of September. 74. What is Direct Debit Facility? Direct Debit Facility is offered to customers holding bank accounts with only certain participating banks under MY GOLD PLAN. The list of participating banks for the Direct Debit Facility is specified in the Application Form. Customers holding Bank accounts with our participating banks even at non-ecs locations can subscribe to R-MGP. 75. Will we have tie up with more banks for Direct Debit other than the existing Banks given in the Application Form? We empanel major Banks which have a PAN India presence for Direct Debit. However we are constantly evaluating the needs of the customer and if sufficient potential volumes are seen from any of the major banks then we will have a direct debit setup with such banks.

15 76. How will the accumulations be credited into my account? Accumulations up to 4 decimal points rounded down shall be credited to the customer's account by dividing the Daily Accumulation Amount (equivalent to 1/20th of the subscription amount) by the Gold Price (incl. of administrative charges) on each business day starting from T+1 (where T is the date of realization of customer payment to RMPM) for 20 successive business days. Fulfillment of Gold 77. Will I be able to place fulfillment request for gold coins prior to the completion of tenure? Yes. Once the lock-in period of 6 months is over, you can redeem gold coins prior to the completion of the tenure. However Pre-Termination Charges as aforesaid will need to be paid. If you do not wish to pay the pre-termination charges, you need to pay the amount remaining to complete 12 times your monthly subscription amount at the time of making your fulfillment related payments. For example, if you have opted for a 1 year tenure with monthly subscription amount of Rs. 2000/- (1 yr commitment amount= 12 x 2000 = 24,000) and want to close the plan after the 8 th month, you need to pay the remaining amount of Rs x 4 = Rs for the pre-mature termination charges not to apply. 78. In what denominations will I be able to get Gold Coins? Fulfillment of gold coins will be in following denominations only: 0.5 / 1 / 2 / 5 / 8/ 10 / 20 / 50 grams. 79. Can I do partial fulfillment? How can one do a Partial Fulfillment of the Gold Gram? Partial fulfillment can only be done if the grams accumulated in the customer s account are greater than 5 grams. Customer can request for a partial fulfillment post lock-in period and latest 15 calendar days prior to maturity subject to a minimum fulfillment of 5 grams and in multiples of 0.5 grams thereafter. Customer has to mention the denomination of coins to be fulfilled at the time of submitting the fulfillment request. Partial fulfillment can be done only in coins & not jewelry. 80. How is the fulfillment related payment calculated? Upon the 20 th allotment of gold grams for the last monthly subscription amount, the balance gold grams for rounding off to the nearest incremental 0.5 grams are calculated. The R-MGP price on the date of generation of maturity advice is taken into consideration for calculating the rounding off charges. Depending on the denomination of the coins, coin making charges are levied (in case of coin fulfillment only) and applicable taxes like VAT/CST and Octroi/Local Body Tax are levied. Delivery charges if any are levied (in case of home delivery). 81. When will I be informed about the maturity of my subscription to the plan? 45 days prior to maturity, our call centre will contact you informing you about the maturity of the plan and to verify your address registered with us in order to ensure delivery of gold at the proper address. If you address has changed, you need to submit a Change request form (available on the Quick Downloads section of the website) mentioning your latest address duly signed, at the nearest CAMS location which can be found at

16 82. Are there any charges at the time of fulfillment? How will I be informed of them? A maturity advice will be sent to the customer which will inform the customer about the following: Fulfillment Related Payments: a) Rounding off charges to the nearest incremental 0.5 grams b) Pre-mature termination charge, if applicable c) VAT & other state levies like Octroi, Entry tax etc. as may be applicable. 83. Is it mandatory to pay the fulfillment related charges? Yes. The customer will be reminded about his pending fulfillment related payments via call and SMS if the fulfillment related payments are not made within 10 working days of dispatch of maturity advice, if the payment is not done till then. 84. How will I get delivery of the gold coins? Delivery of gold coins will be done at your registered address via courier. After all the fulfillment related charges have been paid, the gold coins will be delivered in sealed envelopes by our empanelled logistics partners. 85. How can I track the movement of my gold coin shipment? An SMS containing the Airway Bill Number (AWB No.) will be sent to you that you need to enter on the website to track your gold coin shipment. 86. What is the TAT of delivery of the gold coins? The TAT for delivery of the gold coins is 10 working days after realization of all fulfillment related payments. 87. What are the documents that will be sent to me along with the gold coins? A tax invoice will be sent to you via and physical post within 3 days of realization of all fulfillment related payments. A physical delivery note will also be a part of the shipment that contains the gold coins. 88. Is there an option to fulfill my gold grams in jewelry form? If yes, then what is the process for the same? Yes, the customer can fulfill their gold grams at the jewellery fulfillment partners empanelled by Reliance My Gold Plan. 89. Where can I get the list of Jewellery Fulfillment Partners empanelled for Reliance My Gold Plan? The list of the jewellery fulfillment partners is available on the website in the Customer Corner section -> Locate Fulfillment Centre. The process to fulfill the gold grams in jewellery form is as follows: 90. Until when can I change my fulfillment preference to jewellery and select the jewellery fulfillment partner? The customer can fill a fulfillment request form latest 15 days prior to maturity indicating his fulfillment preference: a) Fulfillment type: Jewellery Fulfillment b) Fulfillment Location: The customer will have to specify the jewellery fulfillment location where he wants to redeem in jewellery.

17 91. What do I need to do after submitting the fulfillment request form? A maturity advice will be sent to the customer which will inform the customer about the following: Fulfillment Related Payments: a) Rounding off charges to the nearest incremental 0.5 grams b) Pre-mature termination charge, if applicable c) VAT & other state levies like Octroi, Entry tax etc. as may be applicable d) Fulfillment Location 92. How can I make the fulfillment related payments? The customer can make the fulfillment related payments via Cheque/DD favoring Reliance My Gold Plan Customer ID to be submitted along with a copy of the maturity advice to the nearest point of presence. The fulfillment related payments can also be made online at ->Quick Pay and selecting the option of Fulfillment Payment. All you need to do is enter your Customer ID and authenticate yourself with your Date of Birth, mobile number or registered ID. The total amount due will be displayed which you can pay via Credit Card, Debit Card or Net Banking. An acknowledgement receipt will be sent to your registered id upon successful transaction. 93. How do I get my jewellery after paying all the fulfillment related charges? The customer will be issued a Jewellery fulfillment voucher upon realization of his payment. The customer needs to walk-in to the jewellery fulfillment outlet with the fulfillment voucher and a valid photo identity proof. Upon successful in-person verification of the customer, the jeweller shall inform the customer of the buy rate of the gold grams specified in the voucher against which the customer can select any piece of jewellery. 94. What if I have accumulated fractional gold grams at the end of chosen tenure? The accumulations will be rounded off to the next higher 0.5 grams at time of fulfillment. The customer will have to pay the prevailing price for the additional fractional grams added for such rounding off along with applicable charges / taxes by cash or cheque (subject to realization) at the time of placing fulfillment request. Eg., If your accumulations are the equivalent of grams, the residual grams would be grams. You will have to pay the prevailing price for the residual grams ( grams) and the VAT/Sales Tax and coin making charges for 5 grams. 95. I have received my Maturity Advice. How do I make the fulfillment related payments? The fulfillment related payments can be made online at ->Quick Pay and selecting the option of Fulfillment Payment. All you need to do is enter your Customer ID and authenticate yourself with your Date of Birth, mobile number or registered ID. The total amount due will be displayed which you can pay via Credit Card, Debit Card or Net Banking. An acknowledgement receipt will be sent to your registered id upon successful transaction. You can also make the fulfillment related payments via Cheque/DD payable to Reliance My Gold Plan Customer ID XXXXXX and deposit the cheque at the nearest CAMS location. The list of CAMS locations is available at

18 96. Will I have to show any identity proof at the time of taking the physical gold coins? You need to produce valid proof of identity along with the fulfillment receipt at the time of taking the delivery of gold coins. Delivery will not be made to any other person acting or purporting to act on behalf for you for fulfillment. 97. Can someone else redeem the physical gold coins on my behalf? Only in case of death of the applicant, the nominee who has been registered as per our records will be able to collect the gold coins by showing the proof of identity of the nominee along with the original / notarized copy of the death certificate of the applicant. 98. What if the customer dies during the tenure of the plan? In case the customer dies within the Lock-in period then the nominee can choose to wait till the completion of the lock-in period to place a fulfillment request for the Gold Coins. Alternatively the nominee can transfer the plan in his/her name by filling out a transfer request form along with the standard KYC documentation. The nominee is such a case can appoint a new nominee. 99. What if the customer doesn t turn up after completing 12 months if he has chosen a 12 month plan. What are the charges? The customer has to fulfill the Gold Grams within 60 days of completion of tenure. If the customer doesn t fulfill the Gold Grams within 60 days of completion of tenure, then Safekeeping charges shall be levied on the customer at the rate of 0.5% per annum of the total subscription amount Can I opt for cash instead of gold coins at the time of fulfillment? No. Fulfillment will be only in the form of physical gold coins Is there a prescribed TAT which we shall follow for delivery of Gold? We shall try to make delivery as soon as a fulfillment request is logged. The max TAT within which the delivery shall be made would be 15 days from the date of entry of fulfillment request.