Government Discontinues gold Monetization Scheme; Banks Can Also Retain
The government has decided to discontinue the gold Monetisation Scheme (GMS) beginning on wednesday in view of the evolving market conditions, the finance ministry stated.
But the banks may additionally hold their quick time period gold deposit schemes (1-3 years), the ministry said in the announcement on Tuesday.
Until november 2024, about 31,164 kilograms of gold have been mobilized underneath GMS.
The gold Monetisation Scheme was announced on september 15, 2015, with the objective to reduce the USA's reliance on the import of gold in the long run and mobilize gold held with the aid of households and establishments inside the USA to facilitate its use for effective purposes.
The GMS is comprised of 3 additives: short time period financial institution deposit (1-3 years), medium time period government deposit (5-7 years), and long time period government deposit (12-15 years).
"Based on the exam of the overall performance of the gold Monetisation Scheme (GMS) and evolving market conditions, it's been determined to discontinue the Medium Term and Long Term government Deposit (MLTGD) components of the GMS w.e.f. march 26, 2025," the ministry said.
The short-term financial institution deposits (STBD) presented by the banks under GMS shall be retained at the discretion of the person banks based totally on the industrial viability as assessed by them. The particular guidelines of the Reserve bank on this regard shall be complied with.
The ministry further said that any gold deposits tendered on the detailed collection and Purity Trying Out Centre (CPTC) or GMS Mobilization, Collection & Checking Out Agent (GMCTA) or the certain financial institution branches underneath the MLTGD additives of GMS shall not be everyday with effect from march 26, 2025.
But the prevailing deposits underneath MLTGD shall be kept until redemption as per extant guidelines of GMS.
Of the entire 31,164 kgs of gold till november 2024, short time period gold deposits accounted for 7,509 kg, medium time period gold deposits (9,728 kg), and long time gold deposits (13,926 kg).
There were approximately 5,693 depositors who participated in GMS.
Gold costs have expanded via Rs 26,530, or forty-one point five percent, to Rs 90,450 in line with 10 grams (as of march 25, 2025) from Rs 63,920 in line with 10 grams on january 1, 2024.
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