Government better Keeping in mind the happening market conditions, it has been decided to shut down the Golden Monetization Scheme (GMS) from Wednesday. Significantly, the Gold Monettion Scheme (GMS) provides an opportunity to individuals or institutions to earn money from sleeping in their home. This scheme provides principal and interest amount for deposited gold and benefits depositors from the increase in gold prices. The Finance Ministry gave this information on Tuesday. However, the ministry said that banks could continue their short -term gold deposited schemes of one to three years. The government had raised about 31,164 kg of gold by November 2024 under the Golden Mudification Scheme.
Started on 15 September 2015
The scheme was announced by the government on 15 September 2015. The purpose of bringing it was to reduce the dependence of the country on the import of gold over the long term and raise gold kept by families and institutions in the country to use it for productive purposes. The GMS consists of three components such as short-term bank deposits (one-three years), medium term government deposits (five-seven years) and long-term government deposits (12–15 years). The ministry said, “It has been decided to close the components of GMS and long -term government deposited components of GMS from March 26, 2025, based on the demonstration of the Golden Monetization Scheme and the emerging conditions of the market.” However, the facility of short -term bank deposits (STBD) introduced by banks under GMS will continue on their discretion of banks. Banks can decide to continue STBD by assessing commercial viability. Detailed guidelines of the Reserve Bank will be followed in this regard.
What will happen if gold is already deposited?
The ministry said that no gold deposits will be accepted from March 26, 2025 under the medium-term component of GMS. But under this component, the existing deposit will continue till the completion of the period as per the current guidelines of the GMS. As of November 2024, out of total 31,164 kg of gold, short -term gold deposits were 7,509 kg, medium duration gold deposits (9,728 kg) and long -term gold deposits (13,926 kg). About 5,693 depositors participated in GMS. Gold prices have increased on January 1, 2024 from Rs 63,920 per 10 grams to Rs 26,530, or 41.5 percent to Rs 90,450 per 10 grams (up to 25 March 2025).
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