Finance

Published: December 11, 2023
Updated: December 11, 2023

Navigating the Gold Monetisation Scheme 2023: A Step-by-Step Guide

Unlocking Gold's Potential:

Dive into the intricacies of the Gold Monetisation Scheme 2023, designed to offer short, medium, and long-term deposit options, allowing investors to earn interest on their idle gold. Here's your comprehensive guide to eligibility, benefits, and the application process.

Understanding the Scheme's Origin:

Launched in November 2015, the Gold Monetisation Scheme (GMS) aims to mobilize gold held by households and institutions. The goal is to facilitate its use for productive purposes and, in the long run, reduce the country's dependence on gold imports.

Eligibility Criteria:

Who Can Invest?

Explore the wide eligibility criteria, welcoming participation from all resident Indians, Hindu Undivided Families (HUF), companies, charitable institutions, proprietorship and partnership firms, trusts, including Mutual Funds/Exchange Traded Funds registered under SEBI, the central and state government, and other entities owned by the central or state government.

Application Process Simplified:

How to Apply for the Gold Monetisation Scheme

● An eligible depositor can open a Gold Deposit Account with designated banks by meeting the KYC norms. Deposits are typically made at the CPTC/GMS Mobilisation, Collection & Testing Agent (GMCTA).
● The process involves testing the purity of deposited gold, issuing deposit receipts, and informing the customer's respective bank about the acceptance of the deposit.

Credit and Interest Accrual:

Once the designated bank receives the deposit receipt, they credit the Short-Term Bank Deposit (STBD) or Medium/Long-Term Government Deposit (MLTGD) account of the customer. The interest on deposits starts accruing from the date of conversion of gold deposited into tradable gold bars or 30 days after receipt of gold at the CPTC/GMCTA, whichever is earlier.

Types of Deposits and Benefits:

1. Short Term Bank Deposit (STBD): 1-3 years
2. Medium Term Government Deposit (MTGD): 5-7 years with 2.25% p.a. interest
3. Long Term Government Deposit (LTGD):
12-15 years with 2.50% p.a. interest

Investors enjoy earning interest on idle gold, flexibility in their investments, and the ability to start with as low as 10 grams of gold.

Main Features and Withdrawal Options:

Depositors can choose to deposit gold for the short term (1-3 years), medium term (5-7 years), or long term (12-15 years). The interest rate varies based on the tenure, with the option of receiving payment annually or on maturity. Physical gold withdrawal is allowed only for short-term investments.

Navigating Financial Opportunities:

This guide empowers you to navigate the Gold Monetisation Scheme strategically, making informed investment decisions while contributing to the reduction of the country's reliance on gold imports. Explore, invest, and maximize the potential of your gold holdings with confidence while staying connected with Corporate India.