The federal government has introduced the discontinuation of the Gold Monetisation Scheme beginning Wednesday, citing evolving market circumstances, based on the finance ministry. Banks, nonetheless, could proceed providing short-term gold deposit schemes (1-3 years), as acknowledged by the ministry on Tuesday.
Since its launch in September 2015, the GMS has mobilised round 31,164 kilograms of gold as of November 2024. The scheme was launched to cut back the nation’s reliance on gold imports and to encourage households and establishments to utilise their gold for productive functions.
The GMS consisted of three parts: short-term financial institution deposits (1-3 years), medium-term authorities deposits (5-7 years), and long-term authorities deposits (12-15 years).
The finance ministry, after reviewing the scheme’s efficiency and market tendencies, determined to discontinue the Medium-Time period and Lengthy-Time period Government Deposit parts efficient March 26, 2025. Banks will nonetheless have the discretion to supply short-term deposits primarily based on their industrial feasibility, with additional pointers from the Reserve Financial institution anticipated.
The ministry additional stated that any gold deposits tendered on the designated Assortment and Purity Testing Centre or GMS Mobilisation, Assortment & Testing Agent or the designated financial institution branches below the MLTGD parts of GMS shall not be accepted with impact from March 26, 2025.
Nevertheless, the present deposits below MLTGD shall proceed until redemption as per extant pointers of GMS.
Of the whole 31,164 kg of gold until November 2024, short-term gold deposits accounted for 7,509 kg, medium-term gold deposits for 9,728 kg, and long-term gold deposits for 13,926 kg.
There have been about 5,693 depositors who participated in GMS. Gold costs have elevated by Rs 26,530, or 41.5%, to Rs 90,450 per 10 grams (as of March 25, 2025) from Rs 63,920 per 10 grams on Jan. 1, 2024.
(With PTI Inputs)
