India’s love for gold has not been a secret for anyone. At one time India was called the golden bird. In 2015, Prime Minister Narendra Modi launched the Gold Monetization Scheme (Gold Monetization Scheme). Its purpose is to make gold held by the family units and institutions of the country, as well as to facilitate its use for productive purposes. Through this scheme, the government wants to reduce the country’s dependence on gold imports in the long run.
Over the last few decades, the domestic stock of gold has grown significantly. You can deposit gold in any form (bars, coins, jewelry) in a GMS account under the Gold Monetization Scheme designed to put this property into productive use. You will get interested in depositing gold as well as income tax exemption under GMS.
It has three types, short term gold deposit, medium-term gold deposit, and long term gold deposit. The duration of short-term gold deposits is from one year to three years, for medium-term gold deposits from five to seven years, and for long-term gold deposits from 12 years to 15 years. There is no limit for minimum deposits in medium and long-term gold, while it is mandatory to deposit at least 30 grams of gold in short-term gold deposits. At the same time, there is no limit to maximum gold deposits.
Will get so much interest
Talking about the interest rate, the banks themselves decide how much interest you will get in a short-term gold deposit, while in the medium-term gold deposit, depositors will get 2.25% per annum as per RBI. Depositors get an annual interest of 2.50 percent in long-term gold deposits.
How does the GMS account work?
Any Indian resident can contact the Collection and Accuracy Testing Center (CPTC). The CPTC tests and recommends gold purity. Based on this advice, the bank deposits the amount in the GMS account and issues a certificate of deposit. GMS accounts are subject to KYC norms. In some cases, banks may deposit gold directly and provide certificates of deposit.