Deposit idle gold under the scheme to ensure safety and earn income from interest too.

  • Benefits
  • Features
  • Eligibility
  • Process
  • Most Important Terms and Conditions MITC

Gold Monetization Scheme : Features

  • Earn Interest on Idle Gold Lying in your locker/house/trust
  • Save on Locker charges incurred on storing gold
  • 102 BOB Branches (PAN INDIA) are authorized to accept Gold deposit under Gold Monetization scheme, 2015
  • Check your Gold purity in your presence at our authorized CPTC Centres

Gold Monetization Scheme : Eligibility

  • Resident Indians [Individuals, HUFs, Proprietorship & Partnership firms, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government or any other entity owned by Central Government or State Government] can make deposits under the scheme.
  • Joint deposits of two or more eligible depositors are allowed and deposit in such case shall be credited to the joint deposit account opened in the name of such depositors. The existing rules regarding joint operation of bank deposit including nominations will be applicable to gold deposits.

Gold Monetization Scheme : Process

  • Existing Savings customers of the bank can visit any one of the designated branches for availing Gold Monetization Scheme (GMS)
  • For Non BoB customers, customers can open a Savings/Current Account with the bank and opt for Gold Monetization Scheme
  • Fill GMS application form at branch & then visit nearest Collection and Purity Testing Centre (CPTC)/GMCTA with customer copy within 7 days
  • Submit the gold with consent for melting process. CPTC/GMCTA to give a deposit receipt with quantity of gold and purity details
  • Customers will receive deposit certificate through courier as well as on registered e-mail id with details of gold quantity, purity and scheme details

Gold Monetization Scheme : Most Important Terms and Conditions MITC

  • Deposit Quantity:
      1. Minimum: At any one time shall be 10 grams of raw gold (bars, coins, jewellery excluding stones and other metals)
      2. Maximum: No Limit
  • Purity: 995 fineness
  • Schemes:
    1. Medium Term Government Deposit (MTGD)
    2. Long Term Government Deposit (LTGD
  • Medium Term Government Deposit (MTGD):
    1. Period of 5 - 7 years
    2. ROI: 2.25% p.a.
    3. Lock in Period - 3 years
  • Long Term Government Deposit (LTGD):
    1. Period of 12 - 15 years
    2. ROI: 2.50% p.a.
    3. Lock in Period: 5 years
  • Interest is denominated in INR & paid on the value of gold prevailing on the date of creation of deposit
  • Deposits are accepted by banks on behalf of the Central Government and deposit receipt & certificates indicated on behalf of the Central Government.
  • Whole or part premature withdrawal allowed subject to such minimum lock-in period and penalties (The redemption of principal at maturity shall, at the option of the depositor, be either in Indian Rupee equivalent of the value of deposited gold at the time of redemption, or in gold. However, any pre-mature redemption of MLTGD shall be only in INR)

Frequently Asked Questions (FAQs)

  • What exactly is the Gold Monetisation Scheme?

    The Gold Monetization Scheme (GMS), which modifies the existing "Gold Deposit Scheme (GDS)" and Gold Metal Loan Scheme (GML), is intended to mobilise gold held by the country's households and institutions and facilitate its use for productive purposes, as well as to reduce the country's reliance on gold imports in the long run.
    The Gold Monetisation Scheme allows gold depositors to earn interest on their bank deposit accounts. When gold is deposited into an account, it begins earning interest. Gold can be in any form, such as bullion or jewellery.

  • Which banks provide gold monetization scheme?

    All Scheduled Commercial Banks, excluding RRBs are eligible to implement the Scheme.

  • Who is eligible to deposit gold under the gold monetization scheme?

    Individuals, HUFs, Proprietorship & Partnership firms, Trusts, including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government, or any other entity owned by the Central Government or State Government are eligible to make deposits under the scheme. Joint deposits of two or more eligible depositors are also permitted under the scheme, and the deposit will be credited to the joint deposit account opened in their names. These gold deposits will be subject to the existing rules governing the joint operation of bank deposit accounts, including nominations.

  • What is minimum investment in gold monetization scheme?

    The minimum quantity of deposits is pegged at 10 grams to encourage even small deposits.

  • Can I earn interest on my gold?

    Yes, the Principal is denominated in Gold (Grams) and Interest is denominated in INR. The Interest is paid in INR upon Maturity.

  • What is the interest rate in gold monetisation scheme?

    For MTGD the interest rate is 2.25% p.a.
    For LTGD the interest rate is 2.50% p.a.

  • How does gold Monetisation scheme work?

    When a customer brings in gold (jewellery) to the bank, it will first be tested for purity and after the consent of the customer, it will be melted. A certificate by the collection centre will be given stating the amount and purity of gold which will have to be produced in the bank for opening the gold deposit account. The quantity of gold will be credited into the customer's account.

  • What happens to your gold jewellery in gold monetization scheme?

    The jewellery is melted and converted into 995 fineness bars. The weight in 995 fineness is considered as the final quantity to be credited to the customer gold deposit account.

  • What are the main objectives of gold monetization scheme?

    The main objectives of gold monetization scheme are:

    • To mobilize gold held by households and institutions in the country.
    • Make gold available on loan from banks to jewellery businesses.
    • To reduce dependence on imports.
  • When was gold Monetisation scheme launched?

    Central government launched the scheme issued vide office Memorandum F.No.20/6/2015-FT dated September 15, 2015.

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