{"id":31476,"date":"2025-03-26T11:14:12","date_gmt":"2025-03-26T05:44:12","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=31476"},"modified":"2025-04-16T12:15:52","modified_gmt":"2025-04-16T06:45:52","slug":"gold-monetisation-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/gold-monetisation-scheme\/","title":{"rendered":"Gold Monetisation Scheme"},"content":{"rendered":"<h2>Gold Monetisation Scheme Latest News<\/h2>\n<p>The Government of India has discontinued Medium-Term and Long-Term Government Deposits (MLTGD) under the Gold Monetisation Scheme (GMS) from March 26, 2025.<\/p>\n<h2>What is the Gold Monetisation Scheme?<\/h2>\n<ul>\n<li><strong>Launched<\/strong>: <strong>November 2015, <\/strong>as an improved version of the <strong>existing Gold Deposit Scheme (GDS)<\/strong> and <strong>Gold Metal Loan (GML) Scheme<\/strong>.<\/li>\n<li>Allows <strong>individuals, institutions, and even government entities<\/strong> to <strong>deposit idle gold<\/strong> in banks and <strong>earn interest<\/strong> instead of storing it in lockers.<\/li>\n<li>Depositors can <strong>redeem the gold deposit in cash, gold bars, or coins<\/strong> upon maturity, but <strong>not in the same form<\/strong> (jewellery, bars, or coins).<\/li>\n<li><strong>Objective<\/strong>:\n<ul>\n<li>To <strong>mobilize idle gold<\/strong> held by households and institutions.<\/li>\n<li>To <strong>bring gold into the formal economy<\/strong> and <strong>reduce gold imports<\/strong>, thereby helping <strong>reduce the Current Account Deficit (CAD)<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Types of Gold Deposits under GMS<\/h2>\n<figure class=\"table\">\n<table>\n<tbody>\n<tr>\n<td>\n<p><strong>Type of Deposit<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Tenure<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Purpose &amp; Redemption<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Short-Term Gold Deposit (STGD)<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>1-3 years<\/strong><\/p>\n<\/td>\n<td>\n<p>Banks use these deposits for <strong>domestic needs and lending<\/strong>. Redemption can be in <strong>gold or cash<\/strong>.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Medium-Term Gold Deposit (MTGD)<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>5-7 years<\/strong><\/p>\n<\/td>\n<td>\n<p>Utilised by the <strong>government and RBI for gold reserves<\/strong>. Redemption only in <strong>cash<\/strong>.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Long-Term Gold Deposit (LTGD)<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>7-12 years<\/strong><\/p>\n<\/td>\n<td>\n<p>Used for <strong>monetary policy and reserves<\/strong>. Redemption only in <strong>cash<\/strong>.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<h2>Other Gold-Related Schemes<\/h2>\n<ul>\n<li><strong>Sovereign Gold Bond (SGB) Scheme<\/strong>: <strong>Discontinued recently<\/strong> along with medium- and long-term GMS deposits.\n<ul>\n<li><strong>Gold bonds were issued in denominations of 5g, 10g, 50g, and 100g<\/strong>.<\/li>\n<li>Aimed to <strong>reduce demand for physical gold<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Indian Gold Coin Initiative<\/strong>: Launched alongside GMS and SGB in <strong>2015<\/strong>.\n<ul>\n<li>First-ever <strong>national gold coin<\/strong> with <strong>Ashoka Chakra emblem<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Gold Monetisation Scheme FAQs<\/h2>\n<p><strong>Q1. <\/strong>What is the Gold Monetisation Scheme (GMS)?<\/p>\n<p><strong>Ans.<\/strong> The Gold Monetisation Scheme (GMS) was launched in 2015 by the Government of India to mobilize idle gold lying with households and institutions and put it to productive use.<\/p>\n<p><strong>Q2. <\/strong>Who can deposit gold under this scheme?<\/p>\n<p><strong>Ans.<\/strong> Individuals, HUFs (Hindu Undivided Families), trusts, and institutions like temples and organizations can deposit gold under the scheme.<\/p>\n<p><strong>Q3. <\/strong>Is the interest earned under GMS taxable?<\/p>\n<p><strong>Ans.<\/strong> No, the interest and capital gains are exempt from income tax, wealth tax, and capital gains tax.<\/p>\n<p><strong>Q4. <\/strong>Can the depositor withdraw gold before maturity?<\/p>\n<p><strong>Ans.<\/strong> Premature withdrawal is allowed, but it may attract penalties or reduced interest.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/gold-monetisation-scheme-to-end-for-medium-term-long-term-deposits-9906124\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Gold Monetisation Scheme (GMS) was launched in 2015 by the Government of India to mobilize idle gold lying with households and institutions and put it to productive use.<\/p>\n","protected":false},"author":5,"featured_media":31478,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-31476","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=31476"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31476\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/31478"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=31476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=31476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=31476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}