Gold Monetisation Scheme
The Gold Monetisation Scheme of the Govt of India allows you to earn regular interest on your gold and save you the risks and storage costs of gold. The scheme is approved by the Reserve Bank of India & licensed by the Ministry Of Finance. The gold deposit collection is undertaken by approved refineries and CPTC’s and are then deposited with the RBI approved scheduled banks.
Gold stored in a private locker, appreciates in value only when prices go up & fail to provide regular interest or dividend. In fact, you pay the bank certain charges for safekeeping. Whereas the Gold Monetisation Scheme allows you to earn interest on your gold deposits.
- Individuals & HUF's
- Proprietorship & Partnership firms,
- Trusts, including Mutual Funds/Exchange Traded Funds registered under SEBI
- Charitable institutions
- Central Government entities
- State Government entities
|Short term||1 to 3 years||2%|
|Medium-term||5 to 7 years||2.5%|
|Long term||12 to 15 years||2.75%|
(collection and purity testing centre)
1Preliminary check -
Once the gold is presented, the preliminary analysis of purity is done by XRF or a Karat-meter. After the test, the customer has the option to withdraw the tendered gold or proceed for further melting and testing.
Ornaments are cleaned of dirt, stones and other impurities, then melted in induction melting furnaces. The facility is equipped with CCTV surveillance and other amenities to monitor, safeguard and ensure transparent processing.
of the gold is ascertained after obtaining a sample of the melted bar, which is assayed using fire assay as per IS 1418: 2009. Upon confirmation of the fire assay test results, Customer may exercise their option to deposit the gold with the bank and in that case, the fee incurred is borne by the bank and in case of any disagreement with the result, the customer has the option to take back the melted gold, after paying BIS approved processing charges.
4Certificate issued -
Once gold is deposited, a certificate is issued by the CPTC certifying the weight of the gold tendered in equivalence of 995 / 999 fineness of gold, On receipt of this certificate from the customer, the bank will credit the equivalent quantity of standard gold of 995/999 fineness into the customer's account.
The collected gold contains impurities and hence transferred to a BIS licensed gold refinery for purification and conversion to pure gold bullion bars. Refineries then transfer the bullion bars to the metal account of the bank.
The gold is then securely transferred to the bank and Vaulted.
Customers have the option to redeem the deposit and its interest in 995/999 purity BIS Hallmarked gold bars or equivalent currency.
|State Bank of Travancore||MG Road||Cochin|
|Punjab National Bank||Ravipuram||Cochin|
|Bank of Baroda||Jos Junction||Cochin|
|Cochin||CGR chambers, 62/1906 A1, Sadanam Road extn, Near Jos Jn, Ernakulam South, Cochin 682016|
|Trivandrum||CGR Travancore Hallmarks, Portion of 27/945 (73), 4th floor, Karimpanal arcade, East Fort, Trivandrum 695023|
|Trichur||CGR Hallmarkers Pvt Ltd, 1 st Floor, Building No. 25/1279/1, Pazhayanadakavu, Round west, Trichur 680 001|
|Contact Number||0484 - 2356747|
Govt approved charges for Testing & Melting. When deposited charges are borne by the bank
|Preliminary analysis of purity - XRF spectrometer.||Rs.25 / pc|
|Stone removal charges(minimum)||Rs.100|
|Up to 300 gm||Rs.900 / lot|
|Up to 600 gm||Rs.1200 / lot|
|Up to 1000 gm||Rs.2000 / lot|
|Every additional 250 gm||Rs.500|
|Fire Assaying Charges(minimum)||Rs.300|
How much gold can a household/person deposit under the GMS?
There is no limit for deposit under GMS.
Whether you have to declare the source of gold deposited under the GMS?
|As clarified by the Chairman, Central Board of Direct Taxes (CBDT), Govt of India and vide circular No.1916 dt 11.05.1994, personal holdings of gold not coming under scrutiny/tax liability by income tax dept are as follows: (Disclaimer: subject to change; Contact a tax professional for up to date information.)|
|(Example for a household of 4 members-husband, wife, daughter and son )|
Why the wait of 30 days for interest accrual?
The Gold Deposited with the CPTC needs to be refined into standard bars /coins for which the deposited gold from the CPTC needs to be transferred to the gold refinery, and after refining, it is transferred to the banks metal account/vaulting system and hence the 30 days time.
Can I withdraw the gold prematurely?
yes, but the interest earned will slightly be affected.
What is the minimum amount of gold, that can be deposited in the scheme?
Minimum of 30gram of gold content.