Features of the Gold Monetization Scheme
- The program offers no maximum investment limit; short-term bank deposits (1-3 years), medium-term deposits (5-7 years), and long-term government deposits (12-15 years).
- Under this program, a gold bar, coin, or piece of jewelry weighing no less than 30 grams of raw gold may be deposited.
- The program permits early withdrawal following a required lock-in period. It does, however, impose a fee for such withdrawals.
- The Gold Monetization Scheme offers an interest rate of 2.50 percent annually, which is higher than the rates provided by earlier gold investments.
- The program also provides the option to redeem short-term deposits for gold or dollars at an ongoing rate.
What is Gold Monetization Scheme?
The Union Cabinet, under the leadership of PM Narendra Modi, first discussed the Gold Monetization Scheme during the presentation of the Union Budget for 2015–16. On November 5, 2015, the Indian government unveiled the Gold Monetization Scheme (GMS), a program designed to monetize the gold that is currently stored in Indian households and put it to useful use. The government also announced the launch of the Sovereign Gold Bond Scheme and the creation of the Indian Gold Coin in addition to the Gold Monetization Scheme.
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