Govt discontinues Gold Monetisation Scheme

The federal government has determined to discontinue the Gold Monetisation Scheme in view of the evolving market circumstances.
| Picture Credit score: Ok.Ok. Mustafah

The federal government has determined to discontinue the Gold Monetisation Scheme (GMS) ranging from Wednesday (March 26, 2025) in view of the evolving market circumstances, the Finance Ministry mentioned.

Nevertheless, the banks could proceed their quick time period gold deposit schemes (1-3 years), the Ministry mentioned within the assertion on Tuesday.

Until November 2024, roughly 31,164 kilograms of gold have been mobilised beneath GMS.

The Gold Monetisation Scheme was introduced on September 15, 2015, with the target to scale back nation’s reliance on the import of gold in the long term and mobilise gold held by households and establishments within the nation to facilitate its use for productive functions.

The GMS is comprised of three parts— Brief Time period Financial institution Deposit (1-3 years); Medium Time period Authorities Deposit (5-7 years), and Lengthy-Time period Authorities Deposit (12-15 years).

“Primarily based on the examination of the efficiency of the Gold Monetisation Scheme (GMS) and evolving market circumstances, it has been determined to discontinue the Medium Time period and Lengthy Time period Authorities Deposit (MLTGD) parts of the GMS w.e.f. March 26, 2025,” the Ministry mentioned.

The Brief-Time period Financial institution Deposits (STBD) provided by the banks beneath GMS shall proceed on the discretion of the person banks based mostly on the business viability as assessed by them. The detailed tips of Reserve Financial institution on this regard shall observe.

The Ministry additional mentioned that any gold deposits tendered on the designated Assortment and Purity Testing Centre (CPTC) or GMS Mobilisation, Assortment & Testing Agent (GMCTA) or the designated financial institution branches beneath the MLTGD parts of GMS shall not be accepted with impact from March 26, 2025.

Nevertheless, the prevailing deposits beneath MLTGD shall proceed until redemption as per extant tips of GMS.

Of the entire 31,164 kgs of gold until November 2024, Brief time period Gold Deposit accounted for 7,509 kg, Medium Time period Gold Deposit (9,728 kg), and Lengthy Time period Gold Deposit (13,926 kg).

There have been about 5,693 depositors who participated in GMS.

Gold costs have elevated by ₹26,530 or 41.5% to ₹90,450 per 10 grams (as of March 25, 2025) from ₹63,920 per 10 grams on January 1, 2024.