Gold Monetisation Scheme (GMS)

Published on 10 Oct 2025

• The Indian government has discontinued the Medium-Term (5–7 years) and Long-Term (12–15 years) deposit options under the Gold Monetisation Scheme (GMS), effective March 26, 2025, due to evolving market conditions and the scheme's performance. 

• However, Short-Term Bank Deposits (1–3 years) will continue at the discretion of individual banks based on commercial viability. 

• Launched in November 2015, the GMS aimed to mobilize idle gold held by resident individuals and institutions.

• The scheme allowed deposits of a minimum of 10 grams of raw gold (bars, coins, jewelry without stones or other metals) with no specified maximum limit.

• Authorized Collection and Purity Testing Centres (CPTCs), will issue a certificate indicating the gold's quantity and purity. 

• This certificate was presented to a participating bank to open a Gold Savings Account, crediting the account with the deposited gold amount. 

Upon maturity, depositors could redeem the principal and interest either in gold or cash equivalent, as per the terms agreed upon at the time of deposit

Keywords:

Gold Monetisation Scheme GMS Collection and Purity Testing Centres CPTC Monetisation Monetary policy