PRESENTED BY

Petekhrienuo Tsira
NU/MN-19/18
 What is Gold Monetization Scheme

• Gold Monetization Scheme was launched by

Government of India in 2015, under this scheme
one can deposit their gold in any form in a GMS
account to earn interest as the price of the gold
metal goes up
The idea behind Gold Monetization
Scheme

Mobilize the gold consume by households

and other institutions
Make gold accessible to banks and
jewelers

Reduce gold imports

Improve liquidity in market

Secure and asset customer’s gold

Benefits of Gold Monetization Scheme

Interest up to 2.5%

Capital Appreciation

Save storage cost

Save Tax
 Types of Gold Monetization Scheme

• Short Term Gold Deposits (STGD)

• Medium Term Gold Deposits (MTGD)
• Long Term Gold Deposits (LTGD)
 Process of GMS
Open a gold saving Verification of the Receipt on purity
account gold for the value

Sends gold for

Bank informs Informs bank of the
melting &
refineries to send value to be credited
preparation of
gold to jewelers to the customer
standard bars

Sends gold to
The jewelers repays
jewelers based on
metal loan in cash
banfk information
 Problems of GMS
• Indian people are attracted to gold not only
because of its value but also because of
cultural aspects
• Most of the customers do not hav proper
documents providing the ownership of
gold, which they want to invest
• Risky due to continuous change in gold
prices