Govt discontinues Gold Monetisation Scheme from today, banks may continue

New Delhi: The government has decided to discontinue the Gold Monetisation Scheme (GMS) starting from Wednesday in view of the evolving market conditions, the Finance Ministry said.

However, the banks may continue their short term gold deposit schemes (1-3 years), the ministry said in the statement on Tuesday.

Till November 2024, approximately 31,164 kilograms of gold have been mobilised under GMS.

The GMS 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.

The GMS is comprised of 3 components -- Short Term Bank Deposit (1-3 years); Medium Term Govt Deposit (5-7 years), and Long-Term Govt Deposit (12-15 years).

“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 components of the GMS w.e.f. March 26, 2025,” the ministry said.