The authorities 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.
However, the banks could proceed their brief time period gold deposit schemes (1-3 years), the Ministry mentioned within the assertion on Tuesday.
Till November 2024, roughly 31,164 kilograms of gold have been mobilised below GMS.
The Gold Monetisation Scheme was introduced on September 15, 2015, with the target to cut 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— Short Term Bank Deposit (1-3 years); Medium Term Government Deposit (5-7 years), and Long-Term Government Deposit (12-15 years).
“Based on the examination of the performance of the Gold Monetisation Scheme (GMS) and evolving market conditions, it has been decided to discontinue the Medium Term and Long Term Government Deposit (MLTGD) components of the GMS w.e.f. March 26, 2025,” the Ministry mentioned.
The Short-Term Bank Deposits (STBD) provided by the banks below GMS shall proceed on the discretion of the person banks based mostly on the industrial viability as assessed by them. The detailed tips of Reserve Bank on this regard shall comply with.
The Ministry additional mentioned that any gold deposits tendered on the designated Collection and Purity Testing Centre (CPTC) or GMS Mobilisation, Collection & Testing Agent (GMCTA) or the designated financial institution branches below the MLTGD parts of GMS shall not be accepted with impact from March 26, 2025.
However, the prevailing deposits below MLTGD shall proceed until redemption as per extant tips of GMS.
Of the whole 31,164 kgs of gold until November 2024, Short time period Gold Deposit accounted for 7,509 kg, Medium Term Gold Deposit (9,728 kg), and Long Term Gold Deposit (13,926 kg).
There had 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.
Published – March 26, 2025 11:46 am IST
