Gold Monetisation Scheme

Depending on the type of deposit and the bank’s rules, the depositors receive interest on their idle gold in the form of cash or grams of gold. The plan provides three different tenure options: medium-term (five to seven years), long-term (12 to 15 years), and short-term (one to three years). After a minimal lock-in period, an early withdrawal is permitted. By giving depositors the opportunity to earn interest on their gold, the Indian government launched it to stimulate idle gold holdings. It is taxable on the earned interest on the gold that was deposited. The government has made the decision to terminate the Gold Monetization Scheme for long- and medium-term deposits.