Gold Deposit Scheme - Secure Your Gold and Earn Interest

Through the Gold Deposit Scheme (GDS) or Gold Monetisation Scheme (GMS), you can deposit gold in any form, such as jewellery, coins, or bars, at authorised banks. The deposited gold is refined and converted into tradable assets, ensuring liquidity.

You earn interest on the gold, and at maturity, you can choose to receive either the gold or its cash equivalent. This scheme not only helps reduce idle gold holdings but also contributes to the country's economy while securing returns on your assets.

The Gold Monetisation Scheme (GMS) modifies the ‘Gold Metal Loan Scheme (GML) and ‘Gold Deposit Scheme’ (GDS). This scheme allows you to invest your gold for a period ranging from 1 to 15 years. 

It functions like a fixed deposit, wherein the deposited gold helps you earn interest and enjoy tax benefits. It is a viable option for investors who intend to multiply their wealth with the help of their gold assets.

This scheme offers a secure and rewarding way to earn returns on your idle gold while contributing to the financial system. With flexible tenure options and tax benefits.

 

Additional Source of Income

Depositors earn interest on gold deposits, providing an additional income source and making the scheme financially attractive.

 

Safekeeping of Gold

The scheme ensures protected vault storage for deposited gold, offering a secure alternative to traditional storage methods.

 

Transparency

You can enjoy complete procedural transparency and be assured of zero hidden charges when opting for a GMS.

 

Financial Inclusion

The scheme provides a secure and interest-bearing avenue for individuals to convert their physical gold into profitable financial instruments.

 

Gold Assets Mobilisation

The scheme aims to mobilise gold held by individual households across India. It helps unlock the intrinsic value of these assets and put them to productive use within the financial system.

 

Tax Exemption

Earnings generated by the Gold Monetisation Scheme are exempt from income tax under Section 10(15)(vi) of the Income Tax Act, 1961 by the Finance Act 1999. Furthermore, you can claim deductions on capi Read More

 

Flexible Redemption

At the time of deposit, you can choose to redeem the deposit’s principal in physical gold or equivalent cash.

 

Premature Withdrawal

Premature withdrawal is allowed only after the lock-in period is complete and comes with a predetermined penalty charge.

 

Early Closure Option

In case you want to close the gold scheme before the completion, you can request gold jewellery, as per the current price of gold and T&C.

To be eligible for this scheme, you are required to fulfil the following requirements and produce the required documents:

• Resident: You must be residing in India

• Applicant type: You must belong to one of the following categories:

  • Individuals (with or without co-applicants) 

  • Hindu Undivided Family (HUF)

  • Companies 

  • Trusts

  • Proprietorship and partnership firms

  • Charitable institutions

  • Central or state government

  • Any entity owned by the state or central government

• Minimum Deposit: You must make a minimum deposit of 10 grams of raw gold

• Gold Certification: Your gold must be BIS certified and evaluated at authorised Collection and Purity Testing Centres (CPTC)

Required Documents

• Gold Deposit Application Form: Duly signed by the depositor(s)

• KYC Documents: As per the bank’s requirements

• Acknowledged Copy of Terms and Conditions: Signed acknowledgement of the scheme’s terms and conditions

The Gold Monetisation Scheme offers various types of gold deposits, each with distinct features regarding duration, lock-in periods, interest rates, and interest payment frequencies. Below is a detailed overview:

Short Term Bank Deposit (STBD)

• Duration: 1-3 years

• Minimum Lock-in Period: As determined by banks

• Applicable Interest Rate: As determined by banks

• Period of Interest Payment: As determined by banks

Medium Term Government Deposit (MTGD)

• Duration: 5-7 years

• Minimum Lock-in Period: 3 years

• Applicable Interest Rate: 2.25% per annum

• Period of Interest Payment: Simple interest paid annually or cumulative interest at the time of maturity, compounded annually

Long Term Government Deposit (LTGD)

•  Duration: 12-15 years

•  Minimum Lock-in Period: 5 years

•  Applicable Interest Rate: 2.50% per annum

•  Period of Interest Payment: Simple interest paid annually or cumulative interest at the time of maturity, compounded annually

This scheme provides flexibility in terms of deposit types, catering to different investment horizons and interest preferences.