The government on Tuesday announced the discontinuation of the Medium-Term and Long-Term Government Deposit (MLTGD) components of the Gold Monetisation Scheme (GMS), effective from March 26, 2025.
The Ministry of Finance said in a statement that banks may continue offering Short-Term Gold Deposits (1-3 years) under the scheme.
About 31,164 kilograms of gold have been mobilised under the GMS as of November 2024.
“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 (MLTGD) components of the GMS with effect from March 26, 2025,” the ministry said.
Accordingly, any gold deposits tendered at designated Collection and Purity Testing Centres (CPTCs), GMS Mobilisation, Collection and Testing Agents (GMCTAs), or designated bank branches under the MLTGD components will not be accepted from March 26, 2025.
“However, existing deposits under MLTGD shall continue until redemption as per the extant guidelines of the GMS,” the ministry added.
The Gold Monetisation Scheme was announced on September 15, 2015, with the objective of reducing the country’s reliance on gold imports in the long run and mobilising gold held by households and institutions for productive purposes.
Furthermore, Short-Term Bank Deposits (STBD) under the GMS will continue at the discretion of individual banks, based on their commercial viability.
“The Reserve Bank of India will issue detailed guidelines in this regard,” the government stated.
The GMS originally comprised three components: Short-Term Bank Deposit (1-3 years), Medium-Term Government Deposit (5-7 years), and Long-Term Government Deposit (12-15 years).
Gold is widely considered a safe-haven asset, gaining traction during times of geopolitical and economic instability. The metal has already hit 16 record highs in 2025, surpassing the $3,000 per ounce mark on four occasions.
(Inputs from IANS)
