The government has closed the Gold Monettion Scheme (GMS). This decision has come into force from 26 March i.e. today. The Finance Ministry has issued a statement informing about the closure of this scheme. It is worth noting that this is the government’s second scheme related to gold, which has been decided to close. Earlier, the government has locked the Sovereign Gold Bond (scheme). However, this was not formally announced in this regard. However, since February 2024, the government has not released a new installment of SGB. It has been assumed that the government does not want to continue this scheme.
What is Gold Monettion Scheme?
Gold Monettion Scheme means Gms It started on 15 September 2015. Under this scheme, a person can deposit the gold lying in the house. In fact, the government launched this scheme to reduce gold imports. The government believed that people would deposit gold lying in the houses in this scheme, so that gold work will have to be imported. The annual gold consumption in India is around 800 tonnes, while the annual production of gold in the country is just one tonne. Therefore, the government has to import a lot more gold every year.
What is the benefit of depositing gold in GMS?
On depositing gold in this scheme, the government issues gold bonds to the deposit. These bonds are 5 grams, 10 grams, 50 grams and 100 grams. They mature in 5-7 years. The calculation of the interest rate on these bonds is based on the gold market price while making gold deposits. The government was thinking that people who make gold deposits in this scheme would earn as interest, so that people would show interest in making gold deposits in this scheme.
Will you not be able to make gold deposits in this scheme now?
You can still deposit useless gold lying in the house in this scheme. The reason for this is that there were a total of three options in this scheme. The government has closed only two options. The first option is of short term bank deposit, which is 1-3 years. The second option is the Medium Term Government Deposit, which is 5-7 years. The third option is Long Term Government Deposit, which is 12–15 years. It is worth noting that the government has closed only medium term and long term government deposits. Short Term Bank Deposit (STBD) will continue.
Although the government has not banned the short term bank deposit (STBD), it has left the decision to continue it to banks. This means that banks can offer this scheme to customers according to their needs. If a bank feels that it does not need to continue this scheme, then he can decide to close it. The reason for this is that banks set the interest rate of short term bank deposit scheme itself. The government decides the interest rate of medium term and long term deposits. The interest rate of medium term bond is 2.25 per cent, while the interest rate of long -term bonds is 2.5 per cent.
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What will happen if you have deposited gold in this scheme?
There is no need to panic people who make gold deposits in this scheme. The money that the government has issued on the gold deposit will be returned to the depositors on maturity. Apart from this, they will also get interest on their bonds. If your bond is matured then you can redeem it. Those whose bonds are going to mature further will get their money on maturity. If the deployment wants to redeem his bond related to this scheme ahead of time, then he can do so. According to the already fixed rules, he will have to pay some penalty.