The scheme was announced by the government on September 15, 2015. In addition to lowering the nation’s long-term reliance on gold imports, the goal of bringing it was to mobilize the gold that families had in the nation.
Gold Monetization Scheme:In light of the better market conditions, the government has decided to end the Gold Monetization Scheme (GMS) as of Wednesday. It is important to remember that the Gold Monetization Scheme (GMS) gives individuals and groups an opportunity to profit from the gold that is sitting in their homes. In addition to providing principal and income on the gold deposited, the system allows depositors to profit from rising gold prices. This information was provided on Tuesday by the Finance Ministry. But the government stated that banks are free to keep their one- to three-year gold deposit programs in place. Up until November 2024, the government had mobilized roughly 31,164 kg of gold through the Gold Monetization Scheme.
Launching on September 15, 2015
This program was launched by the government on September 15, 2015. It was introduced with the intention of easing the nation’s long-term reliance on gold imports and free locally held gold held by families and institutions for productive uses. 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) make up GMS. “It has been decided to withdraw the medium-term and long-term government deposit components of GMS from March 26, 2025, based on the analysis of the Gold Monetization Scheme’s performance and the emerging market conditions,” the ministry stated. Yet, banks will continue to offer the short-term bank deposit (STBD) service under GMS at their own discretion. By evaluating the company’s viability, banks can determine whether to continue STBD. In this regard, the Reserve Bank’s detailed rules will be agreed
If gold has already been deposited, what will happen
The government said that as of March 26, 2025, no gold deposits will be permitted under the medium-term component of GMS. However, in compliance with the current GMS criteria, previous deposits under this component will remain in effect until the end of the period. Short-term gold deposits totaled 7,509 kg, medium-term gold deposits for 9,728 kg, and long-term gold deposits for 13,926 kg of the 31,164 kg of gold deposited up till November 2024. About 5,693 depositors took part in GMS. The price of gold has increased by Rs 26,530 or 41.5 percent from Rs 63,920 per 10 grams on January 1, 2024 to Rs 90,450 per 10 grams (as of March 25, 2025).