Gold Monetization Scheme: The Ministry of Finance on Tuesday announced that it has decided to shut down the Gold Monetisation Scheme (GMS) from Wednesday, considering improving market conditions. However, the ministry mentioned that banks may continue offering their short-term gold deposit schemes (ranging from one to three years).
What is the Gold Monetisation Scheme?
Launched by the government on September 15, 2015, the Gold Monetisation Scheme aimed to reduce the country’s dependence on gold imports in the long term while mobilizing the gold held by families and institutions within the country to use it for productive purposes.
Under the Gold Monetization Scheme, the government had already collected approximately 31,164 kilograms of gold until November 2024.
Gold Monetisation Scheme: Comprises 3 components
The GMS comprises three components: short-term bank deposits (one to three years), medium-term government deposits (five to seven years), and long-term government deposits (12 to 15 years).
Medium and long-term deposits discontinued
After March 26, 2025, no new deposits will be accepted under the medium-term and long-term options. However, existing deposits in these schemes will continue until their maturity. Going forward, only short-term deposits will be available.
Short-term bank deposit will continue
Apart from that, the short-term bank deposit (STBD) facility, offered by banks, will continue at the discretion of the banks. Banks may decide to continue the STBD after assessing commercial viability. Detailed guidelines from the Reserve Bank of India will be followed in this regard.
With Inputs From Agency
