GMS
Gold Monetisation Scheme
India holds an estimated 25,000 tonnes of private gold — the world's largest private gold stock — mostly lying idle in homes, lockers, and temples. The Gold Monetisation Scheme (GMS, launched November 2015) enables individuals, HUFs, trusts, and institutions to deposit this idle gold with banks and earn interest. Three tenures: Short-Term Bank Deposit (STBD: 1–3 years, 0.5%–1% p.a.); Medium-Term Government Deposit (MTGD: 5–7 years, 2.25% p.a.); Long-Term Government Deposit (LTGD: 12–15 years, 2.5% p.a.). Interest and capital gains are completely exempt from income tax, capital gains tax, and wealth tax. Gold is assessed for purity at CPTCs (Collection and Purity Testing Centres). On maturity, depositors receive equivalent gold or Indian Rupees.
Key Objectives
- Mobilise idle gold in Indian households and institutions.
- Provide interest income on idle gold assets.
- Reduce India's dependence on gold imports.
Benefits
Eligibility
- Resident Indians — individuals, HUFs, proprietorships, partnerships, companies
- Charitable institutions and trusts
- Central Government, state government, or entities owned by them
- Minimum 10 grams of gold (coins, bars, jewellery)
- Gold must be assessed at a CPTC before deposit
How to Apply
Visit a designated bank branch (SBI, Bank of Baroda etc.) for GMS information
Take gold to nearest CPTC for purity assessment
CPTC assesses weight and purity — melts or assays gold and issues purity certificate
Bank opens GMS account — credits gold units equivalent to assessed pure gold
Interest credited in gold (STBD) or cash (MTGD/LTGD) per scheme terms
On maturity: redeem in gold (995 purity) or cash at prevailing gold price
Required Documents
Frequently Asked Questions
What happens to my gold after I deposit it under GMS?
Your gold is melted at a CPTC, assayed for purity, and the equivalent pure gold credited to your GMS account. The physical gold ceases to exist in its original form. At maturity, you receive 995-purity gold bars/coins OR the equivalent cash value — your original jewellery/coins are not returned.
Is there any risk to depositing gold under GMS?
GMS deposits are backed by the banking system. STBD gold is with the bank; MTGD and LTGD gold is with the government (RBI). Sovereign guarantee applies. There is NO price risk — at redemption you receive the same gold quantity (or its current rupee equivalent).