Gold Monetisation Scheme Discontinued: The Reserve Bank of India (RBI) announced certain amendments to its rules on the Gold Monetisation Scheme after the central government decided to discontinue two categories of deposits under the 2015 scheme citing evolving market conditions. The changes took effect on Wednesday, March 26. Read on to learn about this development in detail.
“Any gold deposits tendered at the designated Collection and Purity Testing Centre (CPTC) or GMS Mobilisation, Collection & Testing Agent (GMCTA) or the designated bank branches towards MLTGD component of GMS shall not be accepted after March 25, 2025. The designated banks, at their discretion, may offer Short Term Bank Deposits (STBD) under GMS. The MLTGD mobilized till March 25, 2025 shall continue till redemption as per the extant guidelines,” the RBI said on Tuesday.
Medium-term Government Deposit and Long-term Government Deposit options withdrawn from Gold Monetisation Scheme 2015
On Tuesday, the Ministry of Finance announced the discontinuation of Medium Term Government Deposit (MTGD) and Long Term Government Deposit (LTGD) options to deposit gold under the Gold Monetisation Scheme. Fresh deposits as well as renewals will not be available in these two options under the scheme.
However, banks may continue their short-term gold deposit options under the scheme, with maturity periods ranging from one to three years, according to the RBI.
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Gold Monetisation Scheme | Amendments to existing provisions under master direction
Amending its master direction, the RBI removed two sections from its guidelines covering the aspects of “Renewal of Deposits-Modalities” and “Partial Renewal and Partial Redemption in gold/INR – Modalities”.
Additionally, the RBI updated a section dedicated to Gold Monetisation Scheme-related frequently asked questions (FAQs).