The Government of India has decided to discontinue the Medium Term and Long Term Government Deposit (MLTGD) components of the Gold Monetisation Scheme (GMS) effective March 26, 2025. This decision follows a review of the scheme’s performance and evolving market dynamics.
- Any gold deposits tendered at the designated Collection and Purity Testing Centre (CPTC) or GMS Mobilisation, Collection & Testing Agent (GMCTA) or the designated bank branches under the said components of GMS shall not be accepted with effect from March 26, 2025. However, the existing deposits under MLTGD shall continue till redemption.
- The renewal of MLTGD has been discontinued with effect from March 26, 2025.
Note: Earlier in 2025 the central government has discontinued the Sovereign Gold Bond (SGB) scheme
Gold Monetisation Scheme:
Objective: GMS was announced on 15th September, 2015 with the objective to reduce country’s reliance on the import of gold in the long run and mobilise gold held by households and institutions in the country to facilitate its use for productive purposes.
- This scheme replaced the then existing Gold Deposit Scheme, 1999.
Eligible Banks: All Scheduled Commercial Banks (excluding Regional Rural Banks).
Eligible Depositors: Resident Indians, Hindu Undivided Families (HUFs), Trusts (Mutual Funds (MF), Exchanges Traded Fund (ETF’s)), Companies, Government entities, and others.
Minimum deposit: The minimum deposit at any one time shall be 10 grams of raw gold (bars, coins, jewellery excluding stones and other metals). There is no maximum limit for deposit under the scheme.
Components Under GMS
Short Term Bank Deposit (STBD): Banks set interest rates and permit premature withdrawals.
- Tenure: 1–3 years.
Medium and Long Term Government Deposit (MLTGD): The rate of interest on such deposit will be decided by Central Government and notified by Reserve Bank of India from time to time.
- Medium Term (MTGD): 5–7 years (interest currently: 2.25% per aannum(p.a))
- Long Term (LTGD): 12–15 years (interest currently: 2.50% p.a.).
- Lock-in Period: MTGD withdrawals allowed after 3 years; LTGD after 5 years.
About CPTC & GMCTA:
i.Collection and Purity Testing Centre (CPTC): Bureau of Indian Standards (BIS) certified centers for gold deposit/redemption.
ii.GMS Mobilisation, Collection & Testing Agent (GMCTA): BIS certified jewelers/refiners authorized to handle deposits.
