Government Scheme: In a significant development, the central government has declared the termination of the Gold Monetization Scheme (GMS) effective March 26, 2025 (Wednesday). The Finance Ministry indicated that this decision is a response to evolving market conditions. Nevertheless, banks will still be permitted to offer short-term gold deposit schemes with durations ranging from 1 to 3 years.
Launched on September 15, 2015, the scheme aimed to utilize gold stored in homes and institutions across the country for productive purposes, thereby reducing reliance on gold imports. As of November 2024, approximately 31,164 kg of gold has been accumulated through this initiative. The government has ceased the medium-term (5-7 years) and long-term (12-15 years) gold deposit schemes, but banks may continue to operate the short-term (1-3 years) deposit scheme independently.
No cause for concern
If you have gold deposited in this scheme, there is no cause for concern. The government has assured that upon completion of your deposit, you can withdraw it either in gold or cash.
Additionally, those with ongoing deposits will continue to earn interest and will receive either cash or gold upon maturity. Should you wish to withdraw your gold prior to maturity, the previous regulations will apply, which may involve deductions. If you are curious about the situation post-March 26, it is important to note that new deposits in medium and long-term schemes will no longer be accepted, while existing deposits will remain unaffected.
Gold price
On January 1, 2024, the price of gold was Rs 63,920 per 10 grams, which surged by 41.5 percent to Rs 90,450 per 10 grams by March 25, 2025. Therefore, if you have invested in this scheme, there is no need for concern, as the government guarantees the security of your deposit.