GMS Medium and Long-Term Deposits Discontinued
Why in the news
After reviewing performance and market changes, the Union Finance Ministry stopped accepting medium- and long-term gold deposits under the Gold Monetisation Scheme (GMS).
Key facts
- Effective date: 26 March 2025.
- No new MLTGD at CPTCs, GMCTAs or bank branches.
- Existing deposits continue till maturity as per RBI’s master directions.
- RBI is expected to issue detailed guidelines soon.
GMS components
| Component | Tenure | Status |
|---|---|---|
| Short-Term Bank Deposit (STBD) | 1-3 years | Continues, based on bank viability |
| Medium-Term Government Deposit | 5-7 years | Discontinued |
| Long-Term Government Deposit | 12-15 years | Discontinued |
About GMS
- Announced on 15 September 2015 to cut long-run reliance on gold imports and mobilise household gold.
- About 31,164 kg of gold mobilised until November 2024.
Implications
- Households and institutions: only short-term deposits remain.
- Banks: participation through STBDs, depending on profitability.
- RBI: will issue revised guidance.
Exam angle
- GMS launched: 15 September 2015; aim: curb gold imports.
- Terms: CPTC, GMCTA, STBD, MTGD, LTGD.