Gold Monetisation Scheme (GMS)

Gold Monetisation Scheme (GMS): The government has decided to discontinue Medium-Term and Long-Term Deposits under the Gold Monetisation Scheme (GMS) from March 26, 2025, citing evolving market conditions and the scheme’s performance.

• About Gold Monetisation Scheme (GMS):

o Launched: November 2015 to make idle gold productive by merging it into the formal economy and reducing India’s gold imports and current account deficit.

o Objective: Mobilise gold and facilitate productive use while easing the government’s borrowing cost and supplementing the RBI's gold reserve.

o Gold Deposits: Accepted in any form — bars, coins, jewellery. Upon redemption, investors can receive cash, bars, or coins, but not the gold in its original form.

• Types of Deposits:

o Short-term Deposit: 1-3 years (to continue).

o Medium-term Deposit: 5-7 years (discontinued).

o Long-term Deposit: 7-12 years (discontinued).

• Benefits:

o Safe Storage: No safekeeping charges; investors get guaranteed returns.

o Mobilisation of Gold: Supports the gems and jewellery industry and boosts exports.

o Tax Benefits: Exempted from capital gains tax on appreciation and interest gains.

o Attractive Interest Rates: Ranged from 2.25% to 2.50%.