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Last Updated on: 22/03/2023

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.

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:

Gold Monetization Scheme


  • 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.


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

Deposit quantity

Minimum: 10 grams of raw gold

(bars, coins, jewelry excluding stones &

other metals)


Maximum: No Limit


995 fineness

Types of Gold Deposit Account


Short Term Bank Deposit (STBD)-

Period of 1 - 3 Years

Medium Term Government Deposit (MTGD) - Period of 5 - 7 years

Long Term Government Deposit (LTGD) -

Period of 12 - 15 years

The deposit under MTGD & LTGD will be accepted by the Bank on behalf of the Central Government.

Interest Rates

STBD - 0.25%

(Decided by bank and subject to change from time to time)

MTGD - 2.25%

LTGD - 2.50%

(Decided by Central Government and subject to change from time to time)

Nomination Facility


Redemption Options - Principal & Interest


STBD - 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.

MTGD & LTGD - 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.  Where the redemption is in gold, an administrative fee of 0.2% shall be collected from the depositor.

Premature Withdrawal

STBD - 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.

MTGD -  can  be  withdrawn  at  any  time  after 3  years 

LTGD - can be withdrawn after 5 years.

However, any pre-mature redemption of MTGD & LTGD shall be only in INR.

Interest payment

In INR only for all the schemes.

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 

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

1. 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.

2. Further, your gold deposit amount is based on the purity of the Gold and so impurities if any, will reduce the gold deposit amount.

3. 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 / 044-28519617.