Government Discontinues Gold Monetisation Scheme Amid Market Shifts

The government will cease the Gold Monetisation Scheme (GMS) from March 26, 2025, due to changing market conditions. While short-term bank gold deposits will persist, medium and long-term government deposits will stop. Currently, 31,164 kg of gold mobilized under GMS, with gold prices surging 41.5%.

The government has announced the termination of the Gold Monetisation Scheme (GMS) starting in March 2025, citing evolving market dynamics. This decision, confirmed by the finance ministry, will affect only medium and long-term government deposits, while short-term bank deposits will remain available.

Launched in 2015, the GMS aimed to reduce gold imports and utilize household-held gold for productive goals. Until November 2024, approximately 31,164 kg of gold had been mobilized under the scheme, indicating significant participation.

The rise in gold prices, up by 41.5% this year, reflects changing market conditions impacting GMS's efficacy. However, existing medium and long-term deposits will continue until redemption as per guidelines.

(With inputs from agencies.)