Gold Monetisation Scheme

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 is 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.



Purity Verification Centres operate as per BIS protocols
The Collection & Purity Testing Centres follow authorised protocols for Operations as dictated by the Bureau of Indian Standards. These centres are set up with modern equipment and facilities which enables transparent and quick processing of the jewellery articles. Protocols and procedures are displayed as mandated by BIS.
Deposit Coins, Bars and Jewellery
Gold jewellery and coins idling in lockers, households, trusts and other institutions are accepted as deposits in the Gold Monetisation Scheme.
Secure Vaulting by Bank with monthly Interest
The deposited gold is securely maintained by the bank, with a gold passbook & regular monthly interest payments. A deposit certificate indicating the pure gold content of your jewellery is issued by the bank, immediately at the time of deposit.
Redemption in BIS Hallmarked Gold bars or Currency
On maturity, they are redeemable in BIS hallmarked gold bars of 5,10,50 & 100 gm sizes, which command the best resale value and may be encashed at international gold prices. 
Exempt from capital gains, wealth & income tax
Earnings on the deposits are exempt from the capital gains tax, wealth tax and income tax. There will be no capital gains tax on the appreciation in the value of gold deposited, or on the interest, you earn from it.
Opening Gold Deposit Accounts are easy and are subject to the same rules of customer identification that are applicable to any other bank account. The Following are eligible to open accounts:
  • Individuals & HUF's
  • Proprietorship & Partnership firms
  • Trusts, including Mutual Funds/Exchange, Traded Funds registered under SEBI
  • Companies
  • Charitable institutions
  • Central Government entities
  • State Government entities
Deposit Plans
Short term 1 to 3 years 2%
Medium-term 5 to 7 years 2.5%
Long term 12 to 15 years 2.75%
Procedures at CPTC
(collection and purity testing centre)





Preliminary 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 with further melting and testing.


Homogenisation -

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.


Sample Analysis -The purity

 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.





Certificate 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.


Refining -

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.


Vaulting -

The gold is then securely transferred to the bank and Vaulted.


Return of gold on maturity -

Customers have the option to redeem the deposit and its interest in 995/999 purity BIS Hallmarked gold bars or equivalent currency.

Bank Partners

Bank Branch Location City
State Bank of Travancore MG Road Cochin
Punjab National Bank Ravipuram Cochin
UCO Bank Ravipuram  Cochin
Bank of Baroda Jos Junction Cochin


Visit your nearest collection centre from the list below
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

For Religious Institutions , Corporates & bulk processing we operate a fully equipped dedicated processing facility.


Govt approved charges for Testing & Melting. When deposited charges are borne by the bank

Particulars Charges
Preliminary analysis of purity - XRF spectrometer.  Rs.25 / pc
Stone removal charges(minimum) Rs.100
Cleaning charges(minimum) Rs.100
Melting Charges
   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
GST  5%


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 )
1 Married woman 500gms
2 Unmarried woman 250gms
3 Married Man 100gms
4 Unmarried Man 100gms
  Total 950gm

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.

Enquire for a Transparent & Detailed quote

Quality Manager,