The Indian government launched the Gold Monetization Scheme (GMS) in 2015. This scheme allows individuals and organizations to earn money by depositing their unused gold. Notably, the GMS combines the previous Gold Deposit Scheme and Gold Metal Loan scheme. Its main goal is to utilize the gold reserves held by households and institutions, putting them to productive use and ultimately reducing India’s dependence on gold imports.
Traditionally, Indians opt for lockers to preserve their unused gold. However, it’s debatable that this option is smart at this point in time. Moreover, investing in the GMS is a smart choice for individuals and institutions, as it provides a secure way to store gold. The GMS functions similarly to a savings bank account, and eliminates the need for a bank locker. With the GMS, individuals can deposit their gold into a gold savings account and earn interest on it.
All About Gold Monetization Scheme
Minimum And Maximum Deposit: The minimum deposit under the GMS at any one time is 10 grams of raw gold. However, there is no limit on maximum deposit.
Type of Deposits: The scheme offers three types of deposit options, namely: short-term, medium-term, and long-term deposits.
Lock-In Period: The lock-in periods under this scheme are: 1 year for short-term deposits, 3 years for medium-term deposits, and 5 years for long-term deposits.
Type of Gold Acceptable: Under this scheme, gold is accepted in its raw form, which includes gold jewelry, coins, and bars, but excludes stones and other metals.
Who Is Eligible?: Resident Indians (Individuals, HUFs, Proprietorship & Partnership firms, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government or any other entity owned by Central Government or State Government).
Interest Rate: The interest range between 2.25-2.5% per annum.
Process Of Investing
Visit a participating bank: Go to a bank that offers the GMS scheme. If you’re not already a customer, open a savings or current account.
Fill out the GMS application: Complete the application form at the bank branch.
Visit the Collection and Purity Testing Centre (CPTC): Within 7 days, take the customer copy to the nearest CPTC.
Submit your gold: Deposit your gold to the CPTC, allowing it to be melted, and receive a deposit receipt with details of the gold’s quantity and purity.
Receive your deposit certificate: You’ll get a certificate via courier and email, confirming the details of your gold deposit and scheme.
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