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The Gold Deposit Scheme (GDS) is a viable option for investors who intend to multiply their wealth with the help of their gold assets. This 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.

Features and 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


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

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 capiREAD MOREtal gains tax under Section 2(14)(vi) of the Income Tax Act as amended by the Finance Act, 1999. READ LESS

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

Eligibility Criteria

As a residing citizen of India, you can opt for the Gold Deposit Scheme. Below is the list of gold loan eligibility criteria:

  • Individuals (with or without co-applicants) 

  • Hindu Undivided Family 

  • Companies 

  • Trusts

How to Apply?

Here are simple steps you can follow to apply for a GDS:

  • Select an authorised bank to apply for the scheme

  • Visit a branch and fill out the application form with the necessary details

  • Get the value of the gold you wish to deposit appraised

  • Submit the application form with the required documents

  • Following this, officials will further guide you through the process.

Apply for a Gold Loan


The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort. 

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.


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What exactly is the Gold Deposit Scheme?

The Gold Deposit Scheme encourages people to deposit their gold in financial institutions to earn interest. The bank then uses the deposited gold for lending purposes.

What is the interest rate on gold deposits?

The annual gold deposit interest rate for short-term schemes is determined by banks and usually ranges from 0.50% to 0.60%. Meanwhile, the rate of interest for medium and long-term deposits ranges between 2.25% and 2.50% p.a. This is as of 9th February 2024.

What is the minimum investment in a gold monetisation scheme?

The minimum investment required for a gold monetisation scheme is 10 grams of raw gold.

In what form will a depositor get back their gold on maturity?

On maturity, you can redeem your deposit in the form of physical gold or cash.

How will the principal and interest be denominated at the time of redemption?

The principal and interest of your Gold Deposit Scheme are denominated in gold and Indian rupees, respectively.

Can I withdraw the deposit prematurely?

Yes, you may be able to withdraw your deposit prematurely from a Gold Deposit Scheme. For medium-term deposits, you can make premature withdrawals after the completion of a 3-year lock-in period. Meanwhile, for long-term deposits, the lock-in period is set to 5 years. In addition, there may be penalties or charges levied on early withdrawal, which leads to an overall reduction in the total interest receivable.

What is the minimum and maximum tenure for the deposit?

The tenure of gold deposits usually ranges between 1 and 15 years. However, this may differ from one scheme to another.

When does the bank issue the Gold Deposit Certificate to the customer?

Once you have deposited your gold with the bank and 30 days have passed, a digital system-generated Gold Deposit Certificate is moved to a secure platform. The bank develops this copy on behalf of the government and sends it to you.

What are the RBI rules for the gold scheme?

RBI has issued certain guidelines regarding the purity of the gold, the maturity period, and the interest rates offered. To know more about these in detail, check out the gold scheme guidelines issued by the Reserve Bank of India.

What happens to your gold jewellery in this scheme?

The gold jewellery undergoes a melting process and is transformed into bars with a fineness of 995. The weight, measured in 995 fineness, is regarded as the ultimate quantity credited to the customer's gold deposit account.

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