{"id":15432,"date":"2025-03-28T05:53:26","date_gmt":"2025-03-28T05:53:26","guid":{"rendered":"https:\/\/lxme.in\/?p=15432"},"modified":"2025-03-28T05:53:30","modified_gmt":"2025-03-28T05:53:30","slug":"what-is-gold-monetization-scheme-and-its-benefits","status":"publish","type":"post","link":"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/","title":{"rendered":"What is Gold Monetization Scheme and What are its benefits?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_75 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/#What_is_Gold_Monetization_Scheme_GMS\" >What is Gold Monetization Scheme (GMS)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/#What_are_the_Features_of_the_Gold_Monetization_Scheme\" >What are the Features of the Gold Monetization Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/#What_are_the_Benefits_of_the_Gold_Monetization_Scheme\" >What are the Benefits of the Gold Monetization Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/#Who_is_Eligible_for_the_Scheme\" >Who is Eligible for the Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/#How_to_Enroll_in_the_Gold_Monetization_Scheme\" >How to Enroll in the Gold Monetization Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/#FAQs\" >FAQs:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/#What_types_of_gold_assets_qualify_for_the_scheme\" >What types of gold assets qualify for the scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/#What_benefits_can_I_expect_from_using_the_Gold_Monetization_Scheme\" >What benefits can I expect from using the Gold Monetization Scheme?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>Gold 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 &amp; security. But how often do we actually <em>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\n<p>This is where the <em>Gold Monetization Scheme<\/em><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 <em>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 &amp; benefits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Gold_Monetization_Scheme_GMS\"><\/span><strong>What is Gold Monetization Scheme <\/strong><strong>(GMS)?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <em>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\n<p>Instead 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<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Features_of_the_Gold_Monetization_Scheme\"><\/span><strong>What are the Features of the Gold Monetization Scheme?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gold 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\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Sr. No.<\/strong><\/td><td><strong>Type of Deposit<\/strong><\/td><td><strong>Duration<\/strong><\/td><td><strong>Minimum Lock-in Period<\/strong><\/td><td><strong>Applicable Interest Rate<\/strong><\/td><td><strong>Periodicity of Interest Payment<\/strong><\/td><\/tr><tr><td>i.<\/td><td>Short Term Bank Deposit (STBD)<\/td><td>1-3 years<\/td><td>As determined by banks<\/td><td>As determined by banks<\/td><td>As determined by banks<\/td><\/tr><tr><td>ii.<\/td><td>Medium Term Government Deposit (MTGD)<\/td><td>5-7 years<\/td><td>3 years<\/td><td>2.25% p.a.<\/td><td>Simple Interest annually or cumulative interest at time of maturity compounded annually.<\/td><\/tr><tr><td>iii.<\/td><td>Long Term Government Deposit (LTGD)<\/td><td>12-15 years<\/td><td>5 years<\/td><td>2.50% p.a.<\/td><td>Simple Interest annually or cumulative interest at time of maturity compounded annually.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Source: RBI FAQs<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Purity Check &amp; Security:<\/strong> Banks assess the purity of gold before accepting deposits.<\/li>\n\n\n\n<li><strong>Minimum &amp; Maximum Deposit Amount: Minimum Amount:<\/strong> 10 grams of raw gold (bars, coins, jewellery excluding stones and other metals). <strong>Maximum Amount:<\/strong> No limit.<\/li>\n\n\n\n<li><strong>Flexibility in Redemption:<\/strong> Depositors can choose to redeem their gold in cash or gold equivalent.<\/li>\n\n\n\n<li><strong>Tax 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\n<p><strong>Note: If you choose Gold Monetization Scheme for depositing your gold jewellery, then you won&#8217;t get your gold jewelry back in its original form under the Gold Monetization Scheme (GMS). Instead, you&#8217;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\n<p>So, before opting for the scheme, please go through all the terms and conditions of the scheme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Benefits_of_the_Gold_Monetization_Scheme\"><\/span><strong>What are the Benefits of the Gold Monetization Scheme?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Earn 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\n<p><strong>Safety &amp; Security<\/strong>: Depositing gold with banks is much safer than keeping it at home or in a locker.<\/p>\n\n\n\n<p><strong>Liquidity Without Selling<\/strong>: You can access your gold when needed, without having to sell it.<\/p>\n\n\n\n<p><strong>Tax-Free Earnings<\/strong>: The interest earned is exempt from income tax and capital gains tax.<\/p>\n\n\n\n<p><strong>Boost to the Economy<\/strong>: The scheme helps reduce India\u2019s gold imports by utilizing domestically held gold.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_Eligible_for_the_Scheme\"><\/span><strong>Who is Eligible for the Scheme?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The scheme is open to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Resident Indians (Individuals &amp; HUFs)<\/li>\n\n\n\n<li>Individuals (including women holding inherited or self-purchased gold)<\/li>\n\n\n\n<li>Trusts including Mutual Funds\/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations and Companies) can make deposits under the scheme.<\/li>\n<\/ul>\n\n\n\n<p>Even small amounts of gold (10 grams or more) can be deposited, making it accessible to many women who own limited gold assets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Enroll_in_the_Gold_Monetization_Scheme\"><\/span><strong>How to Enroll in the Gold Monetization Scheme?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Visit a Bank:<\/strong> Approach a designated bank offering the scheme.<\/li>\n\n\n\n<li><strong>Purity Testing:<\/strong> Your gold will be assessed at an authorized testing center.<\/li>\n\n\n\n<li><strong>Deposit Gold:<\/strong> Once tested, deposit it in your preferred tenure.<\/li>\n\n\n\n<li><strong>Start Earning Interest:<\/strong> Interest accrues as per the deposit tenure and scheme guidelines.<\/li>\n<\/ol>\n\n\n\n<p>For years, women have relied on gold as a means of financial security, but now there\u2019s a way to <em>grow<\/em> that security! Instead of letting gold sit idle, you can make it work for you with the <em>Gold Monetization Scheme<\/em><em>.<\/em> Whether you\u2019re a working woman, a homemaker, or someone planning for future financial needs, this scheme ensures your gold isn\u2019t just a prized possession but also a productive asset.&nbsp;<\/p>\n\n\n\n<p>However, parking your gold in the GMS Scheme is completely up to you and you should read all the terms and conditions of the bank offering it before making a final choice<\/p>\n\n\n\n<p>So, the next time you open your locker and see all that unused gold, think beyond just storing it think about <em>growing<\/em> it!<\/p>\n\n\n\n<p>However, buying physical gold\/gold jewelry is a luxury as you have to pay various costs like GST, making &amp; design charges, storage charges, etc. So, if you want to invest in gold, then invest smartly with a gold mutual fund where you don\u2019t have to bear all of the above costs and most importantly you can start investing with as low as just Rs.100. So, check out the Lxme app- <a href=\"https:\/\/lxme.in\/\" target=\"_blank\" rel=\"noreferrer noopener\">investment for women<\/a> and look out for\u00a0 Rs.100 Gold Fund which is well researched and curated by experts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1741678560040\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_types_of_gold_assets_qualify_for_the_scheme\"><\/span><strong>What types of gold assets qualify for the scheme?<\/strong><br><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The gold is accepted in the form of raw gold, i.e., jewellery, coins, and gold bars, excluding stones and other metals.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1741678607550\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_benefits_can_I_expect_from_using_the_Gold_Monetization_Scheme\"><\/span><strong>What benefits can I expect from using the Gold Monetization Scheme?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>There are various benefits you can expect from the Gold Monetization Scheme, such as earning interest on idle gold jewelry or physical gold, a taxation benefit, and liquidity without selling.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What types of gold assets qualify for the scheme?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"The gold is accepted in the form of raw gold, i.e., jewellery, coins, and gold bars, excluding stones and other metals.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What benefits can I expect from using the Gold Monetization Scheme?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"There are various benefits you can expect from the Gold Monetization Scheme, such as earning interest on idle gold jewelry or physical gold, a taxation benefit, and liquidity without selling.\"\n    }\n  }]\n}\n<\/script>\n\n\n\n<p>Further read:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/lxme.in\/best-saving-schemes-for-women-in-india\/\" data-type=\"URL\" data-id=\"https:\/\/lxme.in\/best-saving-schemes-for-women-in-india\/\" target=\"_blank\" rel=\"noreferrer noopener\">Best Saving Schemes for Women in India<\/a><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/lxme.in\/reasons-to-invest-in-equity-market\/\" data-type=\"URL\" data-id=\"https:\/\/lxme.in\/reasons-to-invest-in-equity-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">10 Reasons to Invest in Equity Market<\/a><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/lxme.in\/best-investment-options-for-a-girl-child\/\" data-type=\"URL\" data-id=\"https:\/\/lxme.in\/best-investment-options-for-a-girl-child\/\" target=\"_blank\" rel=\"noreferrer noopener\">Best Investment Options for a Girl Child \u2013 Secure Her Future<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Gold 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 &amp; security. But how often do we actually use it? Most of the time, we don\u2019t wear out of fear as chain snatching or <a href=\"https:\/\/lxme.in\/v1\/what-is-gold-monetization-scheme-and-its-benefits\/\" class=\"more-link\">&#8230;<span class=\"screen-reader-text\">  What is Gold Monetization Scheme and What are its benefits?<\/span><\/a><\/p>\n","protected":false},"author":10,"featured_media":15433,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[655],"tags":[953,954,952,951,955],"class_list":["post-15432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-saving","tag-gold-bond-investment","tag-gold-deposit-scheme","tag-gold-monetization-scheme","tag-how-gold-monetization-scheme-works","tag-what-is-gold-monetisation-scheme"],"acf":[],"_links":{"self":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/15432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/comments?post=15432"}],"version-history":[{"count":2,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/15432\/revisions"}],"predecessor-version":[{"id":15569,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/posts\/15432\/revisions\/15569"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media\/15433"}],"wp:attachment":[{"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/media?parent=15432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/categories?post=15432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lxme.in\/v1\/wp-json\/wp\/v2\/tags?post=15432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}