Gold Monetisation Scheme: In News
The Government of India has discontinued Medium-Term and Long-Term Government Deposits (MLTGD) under the Gold Monetisation Scheme (GMS) from March 26, 2025.
- November 2015, as an improved version of the existing Gold Deposit Scheme (GDS) and Gold Metal Loan (GML) Scheme.
- Allows individuals, institutions, and even government entities to deposit idle gold in banks and earn interest instead of storing it in lockers.
- Depositors can redeem the gold deposit in cash, gold bars, or coins upon maturity, but not in the same form (jewellery, bars, or coins).
- Objective is To mobilize idle gold held by households and institutions, To bring gold into the formal economy and reduce gold imports, thereby helping reduce the Current Account Deficit (CAD).
