The Gold Monetization Scheme (GMS) for medium- and long-term deposits will end on March 26, 2025, according to the Finance Ministry

The Gold Monetization Scheme (GMS): What is it?

The goal of the GMS is to bring gold into the official financial system by mobilizing dormant gold held by both individuals and institutions.

Launch Year: November 2015, as a modernized version of the 1999-founded Gold Deposit Scheme.

The Reserve Bank of India (RBI), scheduled commercial banks, and the Ministry of Finance worked together to implement it. The goal is to monetize gold held by individuals and organizations in order to reduce gold imports and alleviate the Current Account Deficit (CAD).

The scheme's categories include: Short-Term Bank Deposit (STBD):

• Duration: one to three years
• Interest is set and paid by banks.

Government Deposit for the Medium Term (MTGD):

• Duration: five to seven years
• Interest: 2.25 percent, set by the Indian government after consulting the RBI

LTGD, or long-term government deposit:

• Duration: 12 to 15 years
• Interest: The Government of India established it (2.5%).

The following are the main characteristics of the Gold Monetization Scheme (GMS): - Minimum Deposit: 10 grams of gold (excluding stones and other metals, including bars, coins, and jewelry). To ensure quality, only gold items free of extra metal or embedded gems are accepted.

No Maximum Deposit Amount: Both individuals and organizations are free to deposit any quantity of gold. Interest Earned in Gold, Not Rupees: To protect investors from currency fluctuations, returns are credited in grams of gold.

Purity Verification through Collection & Purity Testing Centers (CPTCs): To ensure transparency, authorized centers evaluate and certify the quality of gold before deposit. Interest is tax-exempt under the Income Tax Act, which makes it a desirable way for gold owners to save money.

Recent GMS Government Decision (Effective March 26, 2025):

Discontinuation of Medium- and Long-Term Deposits: In accordance with bank regulations, only short-term deposits (one to three years) will be accessible.

Banks may choose to continue offering short-term bank deposits in compliance with RBI regulations. We do not accept new deposits or renewals. No new deposits or account renewals will be permitted, but existing accounts will stay open.