What benefits can I expect from using the Gold Monetization Scheme?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\nGold has always been and will be an integral part of Indian households, especially for women. We inherit it, buy it during special occasions, and consider it a symbol of prosperity & security. But how often do we actually use<\/em> it? Most of the time, we don\u2019t wear out of fear as chain snatching or theft has increased, so, most of it remains locked away, doing nothing in there.<\/p>\n\n\n\nThis is where the Gold Monetization Scheme<\/em> (GMS)<\/em> comes in! It allows women to put their idle gold to work by earning interest while keeping ownership intact. Think of it as an FD for gold<\/em>! If you\u2019ve ever wondered how to make your gold work for you, this scheme could be explored. In this blog, we\u2019ll understand what is gold monetisation scheme? How gold monetization scheme works? What are the features & benefits.<\/p>\n\n\n\n<\/span>What is Gold Monetization Scheme <\/strong>(GMS)?<\/strong><\/span><\/h2>\n\n\n\nThe Gold Monetization Scheme<\/em> was launched by the Government of India to help individuals and institutions earn interest on their idle gold. Under this scheme, people can deposit their gold in any form, be it jewelry, coins, or bars with designated banks and earn interest over time.<\/p>\n\n\n\nInstead of letting your gold sit idle in lockers, Gold Monetization Scheme enables gold owners to benefit financially while contributing to the country\u2019s economy.<\/p>\n\n\n\n
<\/span>What are the Features of the Gold Monetization Scheme?<\/strong><\/span><\/h2>\n\n\n\n\nGold Deposit Options:<\/strong> Short-term (1-3 years), Medium-term (5-7 years), and Long-term (12-15 years). Refer to the below table for more details:<\/li>\n<\/ul>\n\n\n\nSr. No.<\/strong><\/td>Type of Deposit<\/strong><\/td>Duration<\/strong><\/td>Minimum Lock-in Period<\/strong><\/td>Applicable Interest Rate<\/strong><\/td>Periodicity of Interest Payment<\/strong><\/td><\/tr>i.<\/td> Short Term Bank Deposit (STBD)<\/td> 1-3 years<\/td> As determined by banks<\/td> As determined by banks<\/td> As determined by banks<\/td><\/tr> ii.<\/td> Medium Term Government Deposit (MTGD)<\/td> 5-7 years<\/td> 3 years<\/td> 2.25% p.a.<\/td> Simple Interest annually or cumulative interest at time of maturity compounded annually.<\/td><\/tr> iii.<\/td> Long Term Government Deposit (LTGD)<\/td> 12-15 years<\/td> 5 years<\/td> 2.50% p.a.<\/td> Simple Interest annually or cumulative interest at time of maturity compounded annually.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nSource: RBI FAQs<\/p>\n\n\n\n
\nPurity Check & Security:<\/strong> Banks assess the purity of gold before accepting deposits.<\/li>\n\n\n\nMinimum & Maximum Deposit Amount: Minimum Amount:<\/strong> 10 grams of raw gold (bars, coins, jewellery excluding stones and other metals). Maximum Amount:<\/strong> No limit.<\/li>\n\n\n\nFlexibility in Redemption:<\/strong> Depositors can choose to redeem their gold in cash or gold equivalent.<\/li>\n\n\n\nTax Benefits:<\/strong> There is no wealth or income tax on interest earned. Moreover, there will be no capital gains tax on the appreciation in the value of gold deposited.<\/li>\n<\/ul>\n\n\n\nNote: If you choose Gold Monetization Scheme for depositing your gold jewellery, then you won’t get your gold jewelry back in its original form under the Gold Monetization Scheme (GMS). Instead, you’ll receive the value of your gold in the form of cash or gold coins. As The jewellery is melted and converted into 995 fineness bars\/coins.<\/strong><\/p>\n\n\n\nSo, before opting for the scheme, please go through all the terms and conditions of the scheme.<\/p>\n\n\n\n
<\/span>What are the Benefits of the Gold Monetization Scheme?<\/strong><\/span><\/h2>\n\n\n\nEarn Interest on Your Gold<\/strong>: Instead of storing gold for years without returns, GMS allows you to earn passive income from it.<\/p>\n\n\n\nSafety & Security<\/strong>: Depositing gold with banks is much safer than keeping it at home or in a locker.<\/p>\n\n\n\nLiquidity Without Selling<\/strong>: You can access your gold when needed, without having to sell it.<\/p>\n\n\n\nTax-Free Earnings<\/strong>: The interest earned is exempt from income tax and capital gains tax.<\/p>\n\n\n\nBoost to the Economy<\/strong>: The scheme helps reduce India\u2019s gold imports by utilizing domestically held gold.<\/p>\n\n\n\n<\/span>Who is Eligible for the Scheme?<\/strong><\/span><\/h2>\n\n\n\nThe scheme is open to:<\/p>\n\n\n\n