The Gold Monetization Scheme was launched on 5th November 2015 by the Government of India to mobilise the idle gold lying in households, institutions, corporates & temple trusts of the country and facilitate its use for productive purposes.
Revamped Gold Deposit Scheme (R-GDS) is in the nature of fixed deposit in gold. The customers can deposit the gold lying idle in bank lockers under R-GDS which will provide them safety and interest income.
The Medium Term Government Deposit and Long Term Government Deposit scheme components of the Gold Monetization Scheme have been withdrawn by RBI with effect from 26.03.2025.
Salient Features of the Scheme are as Follows:
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Purpose
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To mobilize the idle gold in the country and put it into productive use
To provide the customers an opportunity to earn interest income on their idle gold holdings.
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Eligibility
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Persons eligible to make a deposit under the scheme are Resident Indians as follows:
- 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.
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Deposit Quantity
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Minimum: 10 Grams of Raw Gold
(Bars, Coins, Jewelry Excluding Stones & Other Metals)
Maximum: No Limit
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Purity
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995 Fineness
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Types of Gold Deposit Account
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Short Term Bank Deposit (STBD)-
Period of 1 - 3 Years
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Interest Rates
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0.10%
(Decided by bank and Subject to Change from Time to Time)
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Nomination Facility
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Available
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Redemption Options - Principal & Interest
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Redemption of principal at maturity will, at the option of the depositor be either in Indian Rupee equivalent of the deposited gold or in gold. The option in this regard shall be made in writing by the depositor at the time of making the deposit and shall be irrevocable.
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Premature Withdrawal
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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.
Any premature redemption shall be in Indian Rupee equivalent or gold at the discretion of the designated banks.
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Interest Payment
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In INR Only.
The interest shall be calculated with reference to the value of gold in terms of Indian Rupees at the time of deposit.
As per the option exercised, interest is payable.
-Annually (31st March) or
-Compounded annually and payable on maturity.
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Tax Benefit
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There is no taxation on this scheme. The interest as well as the maturity amount are completely tax free.
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Steps Involved
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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 www.iob.in).
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Please also note that
- Your Jewellery won't stay in the same form in which you deposit as it will be melted and stored of 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.
- If redemption is done in gold, the mode of payment will be in bars/coins and any fractional parts 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 / 044-28519617.