Gold Monetisation Scheme: The objective of bringing this scheme was to mobilise the gold held by families and institutions in the country along with reducing the country’s dependence on gold imports in the long term.
Gold Monetisation Scheme: The government has decided to discontinue the Gold Monetisation Scheme (GMS) in view of the improving market conditions. The Finance Ministry gave this information on Tuesday. However, the ministry said that banks can continue their short term gold deposit schemes of one to three years.
It was started 10 years ago
Let us tell you that the government had announced this scheme on September 15, 2015. The objective of bringing it was to reduce the country’s dependence on gold imports in the long term as well as to mobilize the gold held by families and institutions in the country so that it can be used for productive purposes. The government had mobilized about 31,164 kg of gold under the scheme till November 2024. Out of the total 31,164 kg of gold deposited till November 2024, short term deposit was 7509 kg, mid term gold deposit (9,728 kg) and long term gold deposit (13,926 kg). About 5,693 depositors participated in the GMS. The prices of gold have increased by Rs 26,530 or 41.5 per cent from Rs 63,920 per 10 grams on January 1, 2024 to Rs 90,450 per 10 grams (as of March 25, 2025).
The Gold Monetisation Scheme consists of three components in the form of short term bank deposits (one-three years), medium term government deposits (five-seven years) and long term government deposits (12-15 years).
Banks will be able to take decision
According to the statement issued by the government, the facility of short term bank deposits (STBD) offered by banks under the Gold Monetisation Scheme will continue at the discretion of the banks. Banks can decide to continue STBD by assessing commercial viability. Detailed guidelines of the Reserve Bank will be followed in this regard. The ministry said that no gold deposits will be accepted under the medium-term component of GMS from March 26, 2025. But the existing deposits under this component will continue till the completion of the period in accordance with the existing guidelines of GMS.
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