The Gold Monetisation Scheme (GMS) is a significant initiative introduced by the Government of India. It was first proposed in the Union Budget for the fiscal year 2015-16 and was officially launched by Prime Minister Narendra Modi on November 5, 2015. The primary objective of the GMS was to mobilize the idle gold reserves in Indian households and put them to productive use. Alongside the GMS, the government also announced the Sovereign Gold Bond Scheme and the introduction of the Indian Gold Coin.
Here is a brief overview of the Gold Monetisation Scheme:
| Gold Monetisation Scheme | |
| Launch Date | November 5, 2015 |
| Launched by | PM Narendra Modi |
| Administered by | Ministry of Finance |
The information about the Gold Monetization Scheme provided in this article would be beneficial for candidates preparing for UPSC 2023 .
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The Gold Monetisation Scheme is a significant initiative by the Government of India and is highly relevant for the IAS Exam .
Advantages of Gold Monetisation Scheme
The Gold Monetisation Scheme was rolled out as a replacement for the Gold Deposit Scheme (GDS) of 1999. The scheme allows gold depositors to earn an annual interest of 2.25% for short-term deposits (1-3 years) and 2.5% for medium and long-term deposits. The scheme's launch in 2015 aimed to mobilize the idle gold held by families and institutions across India.
Key features of Gold Monetisation Scheme include:
- The scheme offers short-term bank deposits (1-3 years), medium-term deposits (5-7 years), and long-term government deposits (12-15 years) with no upper limit for investment.
- Under this scheme, a minimum deposit of 30 grams of raw gold is allowed in the form of a gold bar, coin, or jewelry.
- The scheme allows for premature withdrawal after a specified lock-in period, although a penalty is levied for such withdrawals.
- The Gold Monetisation Scheme offers an interest rate of 2.50% per annum, which is higher than the rates offered by previous gold investment schemes.
- The scheme also allows for the redemption of short-term deposits in the form of either gold or rupees at the prevailing rates.
Candidates can refer to the following links to prepare better for the upcoming UPSC Exams –
To learn about other government schemes , refer to the linked article.
