Gold Monetization Scheme 2023
The Gold Monetisation Scheme (GMS), launched in November 2015, continues to be a significant initiative in India, aiming to mobilize the gold held by households and institutions. The primary objective is to facilitate the productive use of gold and, in the long run, reduce the country’s dependence on gold imports. This article provides a detailed overview of the Gold Monetisation Scheme 2023, covering eligibility, application procedures, types of deposits, benefits, and key features.
Eligibility Criteria
The Gold Monetisation Scheme is open to all resident Indians, offering a broad spectrum of eligible participants, including:
- Hindu Undivided Family (HUF)
- Companies
- Charitable institutions
- Proprietorship and Partnership firms
- Trusts, including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations
- Central Government
- State Government
- Other entities owned by the Central or State Government
How to Apply?
To participate in the Gold Monetisation Scheme, eligible depositors can follow these steps:
- Open a Gold Deposit Account with any designated bank, adhering to Know Your Customer (KYC) norms.
- Make deposits at the Collection & Testing Agent (GMCTA) or Customer Point Testing Centre (CPTC), where the purity of the gold is tested. The depositor is then issued a deposit receipt of standard gold (995 fineness).
- The designated bank will credit the Short-Term Bank Deposit (STBD) or Medium/Long-Term Government Deposit (MLTGD) account within 30 days of the gold deposit, regardless of whether the deposit receipt is submitted or not.
- Interest on deposits begins accruing from the date of conversion of gold into tradable gold bars or 30 days after gold receipt at the CPTC/GMCTA, whichever is earlier.
Types of Deposits
The Gold Monetisation Scheme offers flexibility with three types of deposits:
- Short Term Bank Deposit (STBD) – 1 to 3 years, with tenure and interest rates determined by banks.
- Medium Term Government Deposit (MTGD) – 5 to 7 years, with a fixed interest rate of 2.25% p.a. after 3 years.
- Long-Term Government Deposit (LTGD) – 12 to 15 years, with a fixed interest rate of 2.50% p.a. after 5 years.
Benefits of Investing
Investing in the Gold Monetisation Scheme comes with several advantages:
- Earn interest on idle gold.
- Contribute to reducing the country’s reliance on gold imports.
- Flexibility in managing investments.
- Start investing with as low as 10 grams of gold.
Main Features
Key features of the Gold Monetisation Scheme include:
- Choice of short-term, medium-term, or long-term deposits.
- Interest rates vary based on the deposit tenure.
- Choose between annual simple interest or cumulative interest on maturity.
- Withdraw physical gold only for short-term deposits; medium- and long-term deposits are redeemable only in rupees.
Conclusion
The Gold Monetisation Scheme 2023 presents a unique opportunity for individuals and various entities to monetize idle gold, earn interest, and contribute to the country’s economic growth. With its diverse eligibility criteria, flexible deposit options, and attractive benefits, the scheme is a viable investment avenue in the Indian financial landscape. Prospective investors are encouraged to explore the scheme’s intricacies and consider integrating it into their investment portfolios for a fruitful and sustainable financial future.
