Centre Discontinues Gold Monetisation Scheme

New Delhi: The government on Tuesday announced to discontinue the medium term and long term government deposit (MLTGD) components of the Gold Monetisation Scheme (GMS), effective from March 26. The Ministry of Finance said in a statement that banks may continue their short term gold deposit schemes (1-3 years).About 31,164 kilograms of gold have been mobilised under GMS (till November 2024).

“Based on the examination of the performance of the Gold Monetisation Scheme (GMS) and evolving market conditions, it has been decided to discontinue the Medium Term and Long Term Government Deposit (MLTGD) components of the GMS w.e.f. March 26, 2025,” said the ministry.

Accordingly, any gold deposits tendered at the designated Collection and Purity Testing Centre (CPTC) or GMS Mobilisation, Collection and 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 as per extant guidelines of GMS,” it added.

The Gold Monetisation Scheme was announced on September 15, 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.

Further, the Short-Term Bank Deposits (STBD) offered by the banks under GMS shall continue at the discretion of the individual banks based on the commercial viability as assessed by them.“The detailed guidelines of Reserve Bank in this regard shall follow,” said there government.