Last Updated on 04/09/2020
IOB Gold Monetization Scheme - GMS

The Gold Monetization Scheme was launched on 5th November 2015 by the Government of India to help you earn interest on your unused gold lying idle in bank lockers. The Gold Monetization Scheme is basically a new deposit tool to ensure mobilization of gold possessed by various families and institutions in India.

IOB's version of this scheme is called IOB Revamped Gold Deposit Scheme (IOB R-GDS) and replaces earlier schemes.

Salient Features of the Scheme are as Follows:


  • Persons eligible to make a deposit under the scheme are 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).

Quantum of Deposits Accepted

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

Types of Gold Deposit Account

  • Short Term Bank Deposit (STBD) - Period of 3 years
  • Medium and Long Term Government Deposit (MLTGD) - Medium term of 5- 7 years or a long term of 12-15 years or for such period as may be decided from time to lime by the Central Government.

Interest Rates

  • STBD interest rates are decided by IOB and subject to change from time to time. For MLTGDs, the interest rates are decided by the government in consultation with RBI and subject to change from time to time.

Redemption Options

  • For STBD, you have an option to redeem your principal either in the form of Gold or in equivalent INR as on the date of maturity.
  • In case of MLTGD, you can again redeem in INR equivalent or in Gold form. However, you will be subject to an administrative fee of 0.2% in case you decide to redeem in metal form.

Remature Withdrawal Options

  • STBDs can be withdrawn in whole or part subject to minimum lock-in period of 1 year. No premature period payment will be allowed during the said period.
  • MLTGDs can be withdrawn at any time after 3 years while LTGDs can be withdrawn after 5 years.
  • Any premature redemption shall be in Indian rupee equivalent or Gold at the discretion of the bank. In all cases of premature withdrawal, interest will be payable on actual number of days the deposit has run on simple interest basis subject to recovery/ adjustment of interest already paid if any.

Tax Benefit

  • There is no taxation on this scheme. The interest as well as the maturity amount are completely tax free.

Steps Involved

  • There are two steps to enroll in this deposit scheme.
  • 1. Purity Verification of your gold.
  • 2. Opening of Gold Deposit Account in an authorized IOB branch (available in our website

Please also note that

  • Your jewelry won't stay in the same form in which you deposit as it will be melted and stored in the form of 99.9% pure gold bars. If you have any studs or stones embedded in your jewelry, the same will be removed and handed over to you before the value is arrived.
  • Further, your gold deposit amount is based on the purity of the Gold and so impurities if any, will reduce the gold deposit amount.
  • You can choose to redeem the gold deposit either in Gold or Cash but this choice must be made at the time of opening the deposit.
  • If redemption is done in gold, the mode of payment will be coins and any fractional parts (i.e. less than 1 gm) will be converted to cash as per prevailing rates at the time of redemption.

For any further details, please contact your nearest designated branch or us at fedpms[at]iobnet[dot]co[dot]in.