Big changes are coming to the Gold Monetization Scheme. From March 26, 2025, the government will no longer offer medium- and long-term gold deposit options. This program, launched in 2015, helped people earn interest on gold kept at home. Now, with gold prices soaring and new economic priorities in place, the scheme is being scaled back. Don’t worry—we’re here to explain what’s happening in simple language, along with smart tips on what to do with your gold now.
Gold Monetization Scheme Ends
Introduced in 2015, the Gold Monetization Scheme was designed to tap into India’s vast reserves of idle gold by offering interest-bearing deposit options. In response to dynamic market conditions and increased fiscal responsibility, the government has announced the discontinuation of medium- and long-term gold deposit schemes effective March 26, 2025. Short-term deposits (1 to 3 years) may still be offered by banks, subject to commercial feasibility. This shift invites investors to reevaluate their gold holdings and consider alternatives such as Sovereign Gold Bonds, Exchange-Traded Funds, or digital gold. Strategic planning, backed by professional advice, will be key to maximizing returns and protecting wealth in this evolving landscape.
| Point | Info |
|---|---|
| Effective From | March 26, 2025 |
| What’s Ending | Medium-Term (5–7 yrs) & Long-Term (12–15 yrs) deposits |
| What Continues | Short-Term deposits (1–3 years) |
| Total Gold Collected | 31,164 kg (till Nov 2024) |
| By Deposit Type | Short-Term: 7,509 kg Medium-Term: 9,728 kg Long-Term: 13,926 kg |
| Total Depositors | Around 5,693 |
| Gold Price (Mar 25, 2025) | Rs 90,450 per 10g (41.5% rise from Jan 2024) |
| New Deposits Status | No new MLTGD deposits accepted after March 26 |
| Existing Deposits | Will continue until maturity as per GMS rules |
| Official Source | Reserve Bank of India |
The government will stop taking Medium-Term (5–7 years) and Long-Term (12–15 years) gold reserves under the Gold Monetization Scheme on March 26, 2025. Short-Term Bank Deposits (1–3 years) will be the only ones left, if they can still make money. As of November 2024, 31,164 kg of gold had been moved around. Of that amount, 7,509 kg were held in short-term deposits, 9,728 kg were held in medium-term deposits, and 13,926 kg were held in long-term deposits by 5,693 investors. The RBI and the Ministry of Finance said that after the date of effect, no more MLTGD deposits will be allowed. But current deposits will stay in place until they mature. On March 25, 2025, the price of 10 grams of gold shot up to Rs 90,450, which is 41.5% more than it was in January 2024.
Why the Government Introduced (and Later Scaled Back) the Gold Monetisation Scheme
The Gold Monetization Scheme (GMS) was open to households, trusts, and institutions, accepting gold in the form of bars, coins, and eligible jewelry. In return, depositors earned interest based on the deposit type: short-term (1–3 years) with bank-determined rates, and medium (5–7 years) or long-term (12–15 years) with government-fixed rates. The minimum deposit was 10 grams, with no upper limit. GMS was a modernized version of the earlier Gold Deposit Scheme, aimed at mobilizing idle gold and integrating it into the formal economy.
GMS was open to households, trusts, and institutions, accepting gold in various forms (bars, coins, and eligible jewelry). In return, depositors received interest based on the type of deposit selected:
- Short-Term Bank Deposit (1 to 3 years) – Bank-offered, flexible rates
- Medium-Term Deposit (5 to 7 years) – Government fixed rate
- Long-Term Deposit (12 to 15 years) – Government fixed rate
The minimum deposit amount was 10 grams, and there was no cap on the maximum limit. GMS was a revamped version of the earlier Gold Deposit Scheme, designed to modernize and streamline gold holdings in India’s economy.
How Can a Customer Deposit Gold Under the Gold Monetization Scheme?
As per the Reserve Bank of India (RBI) guidelines, any eligible individual can open a Gold Deposit Account with a designated bank after fulfilling the KYC (Know Your Customer) requirements. Once the account is set up, the customer needs to visit a Collection and Purity Testing Centre (CPTC) or a GMS Mobilisation, Collection & Testing Agent (GMCTA). At this center, the customer’s gold is tested for purity in their presence. Based on the purity results, the gold is converted into standard gold of 995 fineness, and a deposit receipt is issued. This receipt represents the value of the gold deposit and forms the basis for earning interest under the scheme.
Expert Opinions on the Discontinuation of the Gold Monetisation Scheme
Experts say that the government’s choice to end Medium-Term and Long-Term Government Deposits under the Gold Monetization Scheme (GMS) on March 26, 2025, shows a change in policy because of how the market is changing and how poorly the scheme has been working. The Ministry of Finance made it clear that banks will only accept short-term gold accounts going forward. They will no longer accept new medium- or long-term deposits.
According to the RBI, all medium- and long-term deposits that are already in place will not be impacted and will continue as planned, unless they are withdrawn early. The RBI hasn’t put out a separate press release, but it has changed its guidelines to reflect the change and stated that from the start date, no new or renewed deposits under MTGD or LTGD will be accepted.
Top Things to Do With Unused Gold at Home
If you have unused gold at home, start by taking inventory of all your items—jewelry, coins, or bars. Check if any are part of old gold schemes and review their terms. To make your gold work for you, consider investing in Sovereign Gold Bonds, Gold ETFs, or Digital Gold for returns without physical storage. You can also sell during high prices, take a gold loan for urgent needs, or repurpose old jewelry into new designs. Gifting gold on special occasions is another smart use. Lastly, use the value to diversify into other investments like mutual funds or real estate for better long-term growth.
| Action | Why It’s Useful |
|---|---|
| Take Inventory | Helps you know what you have and plan effectively |
| Review Old Gold Schemes | Check maturity, interest, or withdrawal from past deposits |
| Invest in Sovereign Gold Bonds | Earn interest and gain from gold price increase, with tax benefits |
| Try Gold ETFs or Mutual Funds | Avoid storage hassles and invest easily via stock exchanges |
| Use Digital Gold Platforms | Buy/sell gold in small units online with high liquidity |
| Sell During Price Highs | Take advantage of market peaks to earn profits |
| Avail Gold Loans | Quick access to funds without selling your gold |
| Repurpose Into Jewelry | Turn old or broken pieces into wearable designs |
| Gift for Special Occasions | Make birthdays or weddings meaningful with gold gifts |
| Diversify Investment Portfolio | Invest in stocks, mutual funds, or real estate using the gold value |
Frequently Asked Questions
Is there anything I should do now that the Gold Monetization Scheme’s medium- and long-term deposits have stopped?
As of March 26, 2025, the Gold Monetization Scheme (GMS) will no longer offer medium- and long-term gold deposit plans run by the Indian government. However, banks may still offer short-term deposits (1–3 years) if they can. Now is a good time to rethink your plan if you have gold or savings that are sitting around doing nothing. You might want to switch to Sovereign Gold Bonds, Gold ETFs, or digital gold instead. These options offer interest income, market exposure, and liquidity. To get the best financial results, you should talk to a professional planner about how to make choices that will help you reach your long-term wealth goals.
How do I begin putting gold into the GMS Scheme?
To use the Gold Monetization Scheme to deposit gold, you must first open a Gold Deposit Account with an approved bank and go through the Know Your Customer (KYC) steps. Then, take your gold to a Collection and Purity Testing Centre (CPTC) or GMCTA that is allowed to do so. There, it will be tested for purity in front of you. It is changed to 995 fineness standard gold after it is checked, and you will get a deposit statement. GMS rules say that you can start making interest with this receipt.
What are the steps to deposit gold under the Gold Monetization Scheme?
Open a Gold Deposit Account at a designated bank, visit an authorized CPTC/GMCTA, get your gold purity tested in your presence, receive a deposit certificate for 995 purity gold, and start earning interest as per the scheme terms.
What can I do with the gold that I haven’t used?
Take a look at all of your gold things to see if any of them are connected to old plans. You can buy Sovereign Gold Bonds, Gold ETFs, or Digital Gold, sell when prices are high, get a gold loan for quick cash, fix up old jewelry, or give it as a gift. For long-term growth, you can also use the value to spread your capital across real estate, mutual funds, and other sources.
