Gold monetisation scheme 2023: How to apply? Benefits, eligibility, other details here

Gold monetisation scheme 2023: Launched in November 2015, the Gold Monetisation Scheme (GMS) was aimed to mobilise gold held by households and institutions and facilitate its use for productive purposes, and in the long run, reduce the country's reliance on imports of the yellow metal.

Gold monetisation scheme: Eligibility

-All residents Indians can invest in this new Gold Monetization Scheme. 2015. 

-Hindu Undivided Family (HUF)

-Companies

-Charitable institutions

-Proprietorship and Partnership firms

-Trusts, including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations,

-Central Government

-State Government

-Other entities owned by the Central or State Government

Gold monetisation scheme: How to apply

• An eligible depositor can open a Gold Deposit Account with any of the designated banks after meeting the KYC norms.
• Generally, deposits under the scheme shall be made at the CPTC/GMS Mobilisation, Collection & Testing Agent (GMCTA) which would then test the purity of the customers’ gold in their presence and issue deposit receipts of the standard gold of 995 fineness to the depositor and also inform the customers’ respective bank about acceptance of deposit. 
• The designated bank will credit the Short-Term Bank Deposit (STBD) or Medium/Long-Term Government Deposit (MLTGD) account of the customer, as applicable, either on the same day of receipt of the deposit receipt by the depositor or within 30 days of the deposit of gold at CPTC/GMCTA (regardless of whether the depositor submits the receipt or not), whichever is earlier.
• Thereafter, the interest on deposits will start accruing from the date of conversion of gold deposited into tradable gold bars or 30 days after receipt of gold at the CPTC/GMCTA, whichever is earlier.

Gold monetisation scheme: Types of deposits

1)Short Term Bank Deposit (STBD) 1-3 years As determined by banks

2)Medium Term Government Deposit (MTGD) 5-7 years 3 years 2.25% p.a. 

3) Long Term Government Deposit (LTGD) 12-15 years 5 years 2.50% p.a. 

Gold Monetisation Scheme: Benefits of investing 

-Investors earn interest on their idle gold

-The scheme would benefit the country by reducing its gold imports.

-It offers flexibility to your investment or gold as and when you need it.

-Investors can start their investment with as low as 10 grams of gold.

Gold Monetisation Scheme: Main features

• You can deposit gold for the short term (one to three years), medium term (five to seven years) or long term (12 to 15 years). 
• The interest rate you earn on your deposit depends on the tenure
• If you receive the payment annually, you will get a simple interest (as of 31 March) on your deposits. If you receive it on maturity, the interest rate will be cumulative (compounding annually). You need to choose the mode of payment at the time of deposit.
• You can withdraw the physical gold you deposited only if you are investing for the short term, wherein you have the option of withdrawing gold or its value in rupees at the prevailing prices. In case of medium- and long-term deposits, you will be paid only in the form of rupees at prevailing prices, and cannot withdraw your physical gold.