How to Earn Money from Your Gold with This Government Scheme

Almost every Indian, from farmers to businessmen, keep gold at home, be it in the form of jewelry, coins, or biscuits because it is a good source of investment. But if your gold is sitting idle at home or in a bank locker and not generating any interest, then you are missing out something!

Keep on reading this article to know how you can benefit from the Gold Monetisation Scheme. This will be an excellent plan for those who have the gold set up for future usages, such as a child's or daughter's wedding. Or, if you only purchase gold as an investment, this plan is for you. This scheme offers a 2.5% interest rate, and GMS is a safer alternative to paying for and maintaining gold in bank safety deposit boxes. This method allows you to earn a profit while keeping your gold secure.

How Much Deposit is Allowed in Gold Monetisation Scheme?

An investor can deposit their gold for a short, medium, or long duration, exactly like a fixed deposit. The Short-Term Bank Deposit (STBD) is a short-term deposit while the medium- or long-term government deposit (MLTGD) is a medium or long-term deposit. The tenure of a short-term bank deposit ranges from one to three years, whereas that of a medium-term and long-term government deposit is from five to seven years and twelve to fifteen years, respectively.

For short-term bank deposits, the bank will accept them directly; but, for medium- and long-term bank deposits, the banks will accept them on behalf of the Indian government. This is a result of the Reserve Bank's notification.

How Can You Benefit from Gold Monetisation Scheme?

Investors can deposit their gold holdings, which offers them security and the opportunity to earn interest. Investors can lower the cost of gold storage with this plan while still earning interest on it. Deposits of gold can be made in the form of jewelry, coins, or bars. At the moment of redemption, you will have the choice of taking it back in the form of cash or gold.

You can earn up to 2.5% percent on the gold placed, depending on the term, when it comes to earning interest.

The sentimental value of the gold is one of the key reasons people haven't chosen this method. People want it to be given back in the same form that it was. If a gold bracelet or necklace is given, it will be melted down to determine its purity. The form in which the gold was originally delivered during the redemption period will not be returned.

Benefits of selecting the Gold Monetisation Scheme

A deposit must be made with at least 30 grams of gold.

The deposit may be withdrawn at any time. You get good flexibility from it.

Instead of keeping the gold in the bank locker and paying for it, you can earn 2.5% interest annually.

The gold that has been deposited is exempt from taxes.

Eligibility Criteria 

Any Indian citizen can apply for this scheme.

What are the Features of the Gold Monetisation Scheme?

This scheme has no maximum cap. Under this plan, an investor can deposit any quantity of gold.

Only gold investments weighing at least 30 grams are accepted in this scheme. It won’t accept any less weight than this. It could take the form of jewelry, a bar, or a coin.

The quantity of gold can be withdrawn prematurely, however, there will be a penalty for this.

This scheme provides interest rates of up to 2.5% annually.

When the deposits mature, they can be redeemed for cash or gold.

In India, there are gold monetization plans offered by all banks.

How to Apply for Gold Monetisation Scheme?

After completing the KYC requirements, anyone who is qualified can apply for the gold monetization scheme by visiting any commercial or public bank or applying online.

Fill out the application for the gold monetization plan at the bank. Within seven days, you must go to one of the nearby collection and purity testing centers (CPTC) with a copy of your application.

Give the gold to be melted and get the deposit receipt from CPTC with the amount and purity of the gold placed. They will also let the bank know about it.

The deposit certificate will be sent to investors through courier and in digital form to your email address.