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Gold Monetisation Scheme

Can I deposit gold at Bank’s branch?

No. All deposits under the scheme shall be made at the Refinery or Refiner's PVC (Purity Verification and testing Centre).


For Retail customers, customer post visiting branch will have to travel to PVC.


For bulk customers, customer post executing the necessary documentation can confirm pick-up date and bank in co-ordination with Refiner’s logistics partner will arrange to pick up gold from customer’s premises.

What is Gold Monetisation Scheme (GMS)?

The Gold Monetisation Scheme enables individuals (households) and institutions unlock the value in their gold holdings by earning interest, while protecting the basic investment i.e. investment made in gold. The deposit is treated as a term deposit in the form of gold, the principal can be redeemed in INR (at the rate of gold prevailing on the date of redemption for Principal) and interest earned on which will be paid annually (at the rate of gold prevailing on the date of creation of gold deposit).

Who is eligible to participate in GMS?

Resident Indians (Individuals, HUFs, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations and Companies) can make deposits under the scheme.

What is the minimum lot that I can deposit in Gold Monetisation Scheme?

The minimum deposit at any one time shall be raw gold (bars, coins, jewellery, excluding stones and other metals) equivalent to 30 grams of gold of 995 fineness. There is no maximum limit for deposit.

Would I get my gold in the same form as I had deposited?

No. The gold jewellery or ornaments deposited would be melted and assayed by the PVC.

Whether interest would be in the form of gold?

No. Interest payments would be done in INR on annual basis on March 31 every year. Interest payment calculations would be on the gold price locked at the time of deposit and not on the ongoing prevailing price of gold.

How will the INR value of my gold deposit be calculated which I will get on maturity?

The Gold will be multiplied with the GOLD-INR price prevailing on the maturity date. The rate is computed considering the RBI Reference rate for USD-INR, GOLD-USD London AM FIX rate and the prevalent custom duty for import of gold. In case of maturity date of deposit falling on a holiday, the previous working day’s rate would be considered.

Can I withdraw the deposit prematurely?

Yes subject to the below Minimum lock-in period and revised interest rate conditions.

(i) Minimum lock-in period
A Medium Term Government Deposit (MTGD) is allowed to be withdrawn any time after 3 years and a Long Term Government Deposit (LTGD) after 5 years.

(ii) Penalty on premature withdrawal
The amount payable to the depositor on premature withdrawal shall be calculated as a sum of (A) and (B), as indicated below:

(A) Actual market value of the gold deposit on the day of withdrawal.
(B) Interest payable on the value of the gold for the actual period for which deposit was held (i.e. Start date of deposit till date of withdrawal)

Features Medium Term Gold Deposit (MTGD) Long Term Gold Deposit (LTGD)
Current interest rate offered on gold deposit 2.25% p.a. 2.50% p.a.
Tenure 5 – 7 years 12 -15 years
Minimum lock-in 3 years 5 years
Penal interest >3 and <5 (MTGD interest less 0.375%)
>=5 and <7 (MTGD interest less 0.25%)
>5 and <7 (MTGD interest less 0.25%)
>=7 and <12 (LTGD interest less 0.375%)
>=12 and <15 (LTGD interest less 0.25%)

What is the rate of interest offered on my deposits?

As announced by the Central Government in consultation with RBI. Presently following rates are offered on deposits:


For medium term the rate of interest is 2.25% p.a.


For long term the rate of interest is 2.5% p.a.

What would be the amount and form of gold to be credited in Gold Deposit account?

The designated banks will credit the MTGD/ LTGD, with the amount of 995 fineness gold as indicated in the advice received from PVC, after 30 days of receipt of gold at the PVC. The deposit account will be denominated in grams of gold with quantity mentioned up to 3 decimals.

When would Bank issue the Gold Deposit Certificate to the customer?

On creation of gold deposit (which is on 30th day from the date of receipt of gold at PVC), bank would issue a system generated Gold deposit certificate to the customer.

Can deposits be made in joint names?

Yes. You can open the FD on joint names also.

Why am I made to wait for interest accrual for 30 days?

The gold deposited needs to be refined in order to make standard tradable bars/coins. It takes time to get the gold transferred from the PVC to the refiner and making standard bars.

When would interest accrual start on my deposit and what would be the start date of my deposit?

Interest on deposits under the scheme will start accruing from 30 days after the receipt of gold at the PVC. The same would be the start date of your gold deposit.

What is the minimum and maximum tenure for which I can place the deposit?

There shall be two gold deposit schemes as under:

Medium Term Government Deposit (MTGD) with maturity period of 5-7 years

Long Term Government Deposit (LTGD) with maturity period of 12-15 years

Both of these deposits would be held by Bank on behalf of the Central Government of India.

Do I need to produce the certificate of deposit issued by the PVC to Bank branch?

Yes. The depositor shall produce the receipt showing the 995 fineness equivalent amount of gold issued by the PVC to the designated bank branch in person or through post.

Is there an option for me to choose on the redemption form in either physical gold or INR equivalent?

Bank is currently offering Medium term and Long term deposit scheme where bank accepts gold on behalf of Central Government. In the said scheme, redemption is possible only in INR.

Can a customer place deposits for broken tenures like 5.5 years, 12.5 years etc.?

No. Only full tenure product is available as of now in multiples of a year. Customer can place deposit for tenure of either 5 years or 6 years or 7 years in MTGD and for 12 years or 13 years or 14 years or 15 years under LTGD.