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Government Discontinues Gold Deposits Under GMS

  • 27 Mar 2025

On 25th March 2025, the Ministry of Finance announced the discontinuation of the Medium-Term and Long-Term Government Deposit (MLTGD) components of the Gold Monetisation Scheme (GMS), while continuing Short-Term Gold Deposits (STGD).

Key Points

  • Policy Change: MLTGD deposits will no longer be accepted after 26th March, 2025, due to performance reviews and evolving market conditions.
  • Gold Mobilisation Impact: 31,164 kg of gold has been mobilized under GMS as of November 2024.
  • Existing Deposits Unaffected: Current MLTGD deposits will continue until maturity as per GMS guidelines.
  • Short-Term Deposits to Continue: Banks may offer 1-3 year deposits based on commercial viability, with RBI issuing guidelines on implementation.
  • GMS Background: Launched in 2015, the scheme aimed to mobilize idle gold and reduce India’s dependence on gold imports.
  • Gold Market Surge: Amid economic and geopolitical uncertainty, gold has hit 16 record highs in 2025, crossing $3,000 per ounce four times.