Gold Monetization Scheme: The Ministry of Finance on Tuesday introduced that it has determined to close down the Gold Monetisation Scheme (GMS) from Wednesday, contemplating enhancing market situations. Nevertheless, the ministry talked about that banks could proceed providing their short-term gold deposit schemes (starting from one to 3 years).
What’s the Gold Monetisation Scheme?
Launched by the federal government on September 15, 2015, the Gold Monetisation Scheme aimed to cut back the nation’s dependence on gold imports in the long run whereas mobilizing the gold held by households and establishments inside the nation to make use of it for productive functions.
Underneath the Gold Monetization Scheme, the federal government had already collected roughly 31,164 kilograms of gold till November 2024.
Gold Monetisation Scheme: Contains 3 elements
The GMS includes three elements: short-term financial institution deposits (one to 3 years), medium-term authorities deposits (5 to seven years), and long-term authorities deposits (12 to fifteen years).
Medium and long-term deposits discontinued
After March 26, 2025, no new deposits shall be accepted below the medium-term and long-term choices. Nevertheless, current deposits in these schemes will proceed till their maturity. Going ahead, solely short-term deposits shall be out there.
Quick-term financial institution deposit will proceed
Aside from that, the short-term financial institution deposit (STBD) facility, supplied by banks, will proceed on the discretion of the banks. Banks could determine to proceed the STBD after assessing business viability. Detailed pointers from the Reserve Financial institution of India shall be adopted on this regard.
With Inputs From Company
