What Is Gold Monetisation Scheme (GMS), 2015?

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Gold Monetisation Scheme (GMS) is a new scheme announced in the Union Budget 2015, which will be launched on November 5, 2015 by PM Narendra Modi.

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The GMS will be replacing the existing Gold Deposit Scheme, 1999. However, individuals holding the outstanding under the Gold Deposit Scheme will be allowed to keep till maturity unless the depositors prematurely withdraw them.

Also read: All that glitters is not Gold: How will gold monetization help India?

What Is Gold Monetisation Scheme (GMS), 2015?

The gold will be accepted at the Collection and Purity Testing Centres (CPTC) certified by Bureau of Indian Standards (BIS). The deposit certificates will be issued by banks in equivalence of 995 fineness of gold.

Also read: Gold Monetisation Scheme: What Is The Procedure To Test Purity Of Gold?

Who are eligible?

Individuals, HUF, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI are eligible to male deposits under the scheme.

The minimum deposit at any one time shall be raw gold (bars, coins, jewellery excluding stones and other metals) equivalent to 30 grams of gold of 995 fineness. While, there is no maximum limit for deposit under the scheme.

Deposit Details

The designated banks will accept gold deposits, there are three types of deposits available.

  • The Short Term Bank Deposit (STBD) (1-3 years)
  • Medium (5-7 years)
  • Long Term Government Deposit Schemes (12-15 years)

There will be provision for premature withdrawal subject to a minimum lock-in period and penalty to be determined by individual banks.

How to Open Gold Savings Account With Banks?

Interest Income

Interest will start accruing from the date of conversion of gold deposited into tradable gold bars after refinement or 30 days after the receipt of gold at the CPTC or the bank's designated branch.


Complaints against any designated banks regarding any discrepancy in issuance of receipts and deposit certificates, redemption of deposits, payment of interest will be handled first by the bank's grievance redress process and then by the Reserve Bank's Banking Ombudsman.


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