Want to Subscribe?
Read Corporate India and add to your Business Intelligence
Unlock Unlimited Access
Finance
Published: December 11, 2023
Updated: December 11, 2023
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.
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.
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.
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.
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.
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.
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.
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.
September 30, 2024 - Second Issue
Industry Review
Want to Subscribe?
Read Corporate India and add to your Business Intelligence
Unlock Unlimited Access
Lighter Vein
Popular Stories
Archives