New federal order bans extension of gold savings schemes beyond 365 days
According to a new federal order, there is a ban on unregulated deposit plans where in the consumers are promised installment waivers
Jewellers who offer gold savings schemes where customers pay an installment every month to get a piece of ornament at the end of the year must definitely get the same within 365 days according to a federal order that was implemented on Thursday last week. This new rule bans unregulated deposit plans where in consumers are promised installment waivers.
Customised contracts of gold savings schemes that extend a period of 1 year are strictly banned by the Unregulated Deposit Schemes Ordinance 2019. The rule also prevents any individual or a group of individuals from accepting loan or deposit from any person other than relatives and partnership firms can accept deposits or loans from relatives of a partner/s.
GJC Chairman, Anantha Padmanabhan, said that schemes must only be treated as advance against sales and ornaments must be given to customers before the end of the year. Many small time jewellers who offer schemes beyond 12 months will be affected with this new order.