India's Gold Strategy Shift: What the End of Long-Term Deposits Means for You

The government of India has chosen to withdraw medium and long-term deposits under the Gold Monetisation Scheme (GMS) from March 26, 2025, due to changing market conditions. The scheme, introduced in 2015 to mobilise dormant gold and cut imports, will now only provide short-term bank deposits on a discretionary basis by individual banks. This is because gold prices have risen 41.5% since January 2024 to ₹90,450 per 10 grams. Though it raised 31,164 kg of gold from 5,693 depositors, the performance of the scheme was below expectations. The existing medium and long-term deposits will be on till redemption, while detailed guidelines on short-term deposits are likely to be issued by the Reserve Bank of India shortly.

 

Source: Economic Times, Financial Express