Gold Monetization: Gold Monetization Scheme: How Can Your Old Jewelry Become a Source of Regular Income?
Gold Monetization Scheme: Gold is not merely for adornment and investment; it can also serve as a source of regular income for you. Let us tell you all about Gold Monetization.
Gold Monetization Scheme: For Indians, gold is not limited merely to being an item of adornment; it is also a significant vehicle for savings and investment. People often carefully preserve old jewelry, broken ornaments, or idle gold in lockers for years on end. However, very few people are aware that this very gold can become a source of regular earnings—either monthly or annually. The government's Gold Monetization Scheme (GMS) stands as an excellent option for this purpose.
What is the Gold Monetization Scheme?
The Government of India launched this scheme in 2015 with the objective of bringing idle gold—lying dormant in households and institutions—into the banking system. Under this scheme, you can deposit your gold with a bank and, in return, earn interest on it. Through this scheme, you can secure a source of regular income right from the comfort of your home. Under the scheme, you can deposit any form of gold you possess—whether it be old jewelry, broken ornaments, gold coins, biscuits, or bars.
About the Scheme...
Under this scheme, you can deposit a minimum of 10 grams of gold; there is no upper limit—you may deposit any maximum quantity of gold. When you submit your gold to the bank, its purity will be verified before it is accepted for deposit. Once you have deposited the gold, the bank pays you interest on it. This interest may be received either in cash or in the form of gold, depending on the specific terms and conditions of the scheme. Furthermore, the interest rate may vary depending on the tenure of the scheme chosen. There are primarily three categories regarding the tenure for depositing gold in a bank:
Short-term Bank Deposits (1–3 years)
Long-term Government Deposits (12–15 years)
Benefits of the Scheme
This scheme offers several potential benefits, such as:
Idle gold lying at home is put to productive use.
Locker rental costs can be saved.
Concerns regarding the security of the gold are alleviated.
Upon maturity, the gold itself—or an equivalent monetary value—is returned.
It is important to note that to avail the benefits of this scheme, you must submit an application. Applications can be submitted through any authorized bank or designated collection center. The process involves an initial assay (verification) of the gold, followed by the issuance of a deposit certificate. A crucial point to bear in mind is that the purity of the gold is verified by melting it down; therefore, you should refrain from depositing any jewelry that holds sentimental value or is associated with family heirlooms.