Prime Minister Narendra Modi officially launched three comprehensive gold-related schemes at a high-profile function, describing them as "sone pe suhaaga" (icing on the cake). As reported by multiple sources, Modi emphasized that India has no reason to be described as a poor country, as it has 20,000 tonnes of gold and highlighted the need to put this gold to productive use. The Prime Minister specifically noted that gold can be a great tool for women empowerment and that they would be the biggest beneficiaries of the new schemes, adding that the reason behind the success of these schemes will be the women of India. Modi also launched a dedicated website for these schemes at http://finmin.nic.in/swarnabharat and distributed Certificates of Investment to six initial investors.
The Gold Monetisation Scheme (GMS) has gained renewed attention following government policy changes to curb gold imports. According to reports from The Financial Express, the government has increased gold import duty from 6% to 15%, a hike of 9% that includes 10% basic customs duty and a 5% Agriculture Infrastructure and Development Cess. Prime Minister Modi has also appealed to Indians to postpone gold purchases by a year. Union Finance Minister Arun Jaitley emphasized that gold lying with an individual can be a personal savings but it does not contribute in the development of the country, stating that from now on, gold will not only be an instrument of security but will also give earnings and will become part of nation building. The government's latest initiatives include appealing not to buy gold for one year and encouraging domestic use of existing gold reserves.
The Prime Minister launched three gold-related schemes at the function, marking a comprehensive approach to gold monetisation. As reported by multiple sources, the schemes include the Gold Monetization Scheme (GMS), Sovereign Gold Bond Scheme, and India Gold Coins. Modi described the launch of the India Gold Coins, bearing the Ashok Chakra, as a matter of pride for the nation, stating that people would no longer have to depend on foreign minted gold bullion or coins. Finance Minister Jaitley noted that the import of gold will come down with the launch of these gold related three schemes, indicating the government's strategic focus on reducing import reliance through domestic gold utilization.
The Reserve Bank of India Gold Monetisation Scheme (GMS), 2015 is currently operational with limited components. As reported by The Financial Express, the government discontinued the Medium Term (5-7 years) and Long Term Government Deposit (12-15 years) components effective March 26, 2025. The Short Term Bank Deposit (1-3 years) component remains available with select banks. The All India Gem & Jewellery Domestic Council (GJC) has submitted a refined framework for GMS, developed through structured stakeholder consultations across banking, refining, and jewellery sectors. Recent developments suggest discussions about getting interest from 2.5% to 3% for depositors, with deposit periods ranging from 1 year to 16 years available.
The operational process involves several key steps according to The Financial Express report. Indians can deposit gold jewellery, including coins and bars, with a bank for a fixed period. The process begins with opening a zero-balance gold deposit account after meeting KYC requirements with any designated bank. Depositors must find the nearest Collection and Purity Testing Centre (CPTC) from the bank's authorised list and hand over gold for assaying. The CPTC issues a receipt showing 995 fineness gold on behalf of the designated bank, with the bank crediting the deposit account 30 days after receipt. Recent reports indicate that depositors need to deposit at least 10 grams of gold to participate in the scheme.
Before depositing gold under the GMS, there are critical factors to verify according to The Financial Express. Depositors should confirm whether the bank pays regular interest or only on maturity, whether premature withdrawal is allowed, and whether redemption on maturity will be in cash or gold. The main disadvantage is that the same jewellery is not returned at maturity - it is melted down and stored as gold bars, with embedded studs or stones removed and returned before valuation. During purity valuation, impurities reduce the gold deposit amount, and redemption in gold is paid in bars or coins with fractional amounts converted to cash. Recent developments show that jewellery will be provided to exporters and domestic manufacturers, reducing the need for foreign gold imports and saving significant foreign currency.
