New Delhi: In light of the assessment of the Gold Monetisation Scheme’s (GMS) performance and the changing market landscape, the Finance Ministry has announced the termination of the Medium Term and Long Term Government Deposit (MLTGD) segments of the GMS, effective March 26, 2025.
The Gold Monetisation Scheme was introduced on September 15, 2015. It aims to decrease the nation’s dependence on gold imports over time and mobilise gold held by households and institutions in the country to facilitate its use for productive purposes.
The GMS was comprised of three components:
- Short Term Bank Deposit (1-3 years)
- Medium Term Government Deposit (5-7 years), and
- Long-Term Government Deposit (12 – 15 years)
After the discontinuation of the Medium Term and Long Term Government Deposit, any gold deposits tendered at the designated Collection and Purity Testing Centre (CPTC) or Gold Monetisation Scheme’s Mobilisation, Collection & 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 the Medium Term and Long Term Government Deposit shall continue till redemption as per the extant guidelines of GMS issued vide Reserve Bank Master Direction of October 22, 2015.
Further, the Short-Term Bank Deposits (STBD) offered by the banks under the GMS shall continue at the discretion of the individual banks based on their commercial viability. The Finance Ministry stated that the detailed guidelines of the Reserve Bank in this regard will follow shortly.
– global bihari bureau
