Gold Monetisation Scheme to End from March 26, 2025
The Government of India has decided to discontinue the Gold Monetisation Scheme (GMS) effective March 26, 2025, citing improving market conditions. The scheme, which allowed individuals and institutions to earn interest on idle gold, will no longer accept medium-term (5–7 years) and long-term (12–15 years) deposits.
However, the short-term bank deposit (STBD) scheme with a tenure of 1 to 3 years will continue, subject to the commercial viability of banks.
About the Gold Monetisation Scheme (GMS)
✔ Launched On: September 15, 2015
✔ Purpose: Mobilize gold reserves held by individuals and institutions, reduce gold imports, and promote productive use of gold.
The GMS consisted of three deposit types:
| Deposit Type | Tenure | Status |
|---|---|---|
| Short-Term Bank Deposit (STBD) | 1 to 3 years | ✅ Will continue |
| Medium-Term Government Deposit (MTGD) | 5 to 7 years | ❌ Discontinued |
| Long-Term Government Deposit (LTGD) | 12 to 15 years | ❌ Discontinued |
What Happens to Existing Gold Deposits?
No new deposits will be accepted under medium-term and long-term components after March 26, 2025.
Existing deposits will continue until maturity as per current GMS guidelines.
Banks may continue to offer short-term gold deposits (STBD) depending on commercial feasibility.
📊 Total Gold Deposited Under GMS (Till November 2024):
Short-Term Deposits: 7,509 kg
Medium-Term Deposits: 9,728 kg
Long-Term Deposits: 13,926 kg
Total Deposited Gold: 31,164 kg
Total Depositors Participated: 5,693
Gold Prices Surge Over 41% in 2024-25
With gold prices rising sharply, the market has seen an increase of ₹26,530 per 10 grams in just over a year:
January 1, 2024: ₹63,920 per 10 grams
March 25, 2025: ₹90,450 per 10 grams
The increase in gold prices has likely influenced the government’s decision to phase out medium- and long-term deposits under GMS.
What Should Investors Do?
✔ Check maturity details of your existing deposits and plan your withdrawals accordingly.
✔ Explore alternative gold investment options, such as:
Sovereign Gold Bonds (SGBs)
Gold ETFs & Gold Mutual Funds
✔ Consult your bank to determine whether the short-term deposit (STBD) option is still available.
Final Takeaway: Act Before the Deadline!
📢 Final Date: March 26, 2025! If you’re considering investing in the Gold Monetisation Scheme, act before the discontinuation of medium- and long-term deposits.
For safe and profitable gold investments, explore SGBs, ETFs, and digital gold options. Stay updated with bank policies on short-term deposits!
