Government Discontinues MLTGD Scheme Under Gold Monetisation Program.
National
The Government of India has decided to discontinue the Medium Term and Long Term Government Deposit (MLTGD) components of the Gold Monetisation Scheme (GMS) effective March 26, 2025. This decision follows a review of the scheme's performance and evolving market dynamics.
- Any gold deposits tendered at the designated Collection and Purity Testing Centre (CPTC), GMS Mobilisation, Collection & Testing Agent (GMCTA), or designated bank branches under the MLTGD components of GMS shall not be accepted with effect from March 26, 2025. However, existing deposits under MLTGD shall continue until redemption.
- The renewal of MLTGD has been discontinued with effect from March 26, 2025. Earlier in 2025, the central government had discontinued the Sovereign Gold Bond (SGB) scheme.
- The Gold Monetisation Scheme (GMS) was launched on September 15, 2015, to reduce gold imports and mobilize domestically held gold for productive use. It replaced the Gold Deposit Scheme, 1999, and allows Scheduled Commercial Banks (excluding Regional Rural Banks) to accept gold deposits. Eligible depositors include resident Indians, HUFs, trusts, companies, and government entities.
Main Point :- (i) Under GMS, deposits start from a minimum of 10 grams of raw gold (bars, coins, jewelry excluding stones/metals) with no maximum limit. The scheme has two components: Short Term Bank Deposits (STBD) with 1-3 years tenure (bank-determined interest and premature withdrawal allowed) and Medium & Long Term Government Deposits (MLTGD). MTGD has a 5-7 years tenure (2.25% interest), and LTGD spans 12-15 years (2.50% interest), with withdrawals permitted after 3 years (MTGD) and 5 years (LTGD).
(ii) The Collection and Purity Testing Centres (CPTC) are BIS-certified facilities that handle gold deposits and redemptions, while GMS Mobilisation, Collection & Testing Agents (GMCTA) are BIS-certified jewelers/refiners authorized to process gold deposits.
(iii) Recently, the Government of India discontinued the MLTGD component of GMS effective March 26, 2025, and earlier in 2025, it also discontinued the Sovereign Gold Bond (SGB) scheme.
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