{"id":229731,"date":"2025-09-30T11:31:47","date_gmt":"2025-09-30T06:01:47","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=229731"},"modified":"2025-09-30T11:31:57","modified_gmt":"2025-09-30T06:01:57","slug":"gold-monetisation-scheme","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/","title":{"rendered":"Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_77 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#Why_was_the_Gold_Monetisation_Scheme_Launched\" >Why was the Gold Monetisation Scheme Launched?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#What_were_the_Components_of_the_Gold_Monetisation_Scheme\" >What were the Components of the Gold Monetisation Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#Why_were_MTGD_and_LTGD_Discontinued\" >Why were MTGD and LTGD Discontinued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#Who_was_Eligible_under_the_Gold_Monetisation_Scheme\" >Who was Eligible under the Gold Monetisation Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#What_were_the_Benefits_of_the_Gold_Monetisation_Scheme\" >What were the Benefits of the Gold Monetisation Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#What_were_the_Challenges_Faced_by_the_Scheme\" >What were the Challenges Faced by the Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#How_is_the_Gold_Monetisation_Scheme_different_from_Sovereign_Gold_Bonds\" >How is the Gold Monetisation Scheme different from Sovereign Gold Bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#Key_Takeaway_Table\" >Key Takeaway Table<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#Questions_on_Gold_Monetisation_Scheme\" >Questions on Gold Monetisation Scheme<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The Gold Monetisation Scheme (GMS) was launched in November 2015 by the Government of India. It was designed as an improved version of earlier schemes like the Gold Deposit Scheme (GDS) and the Gold Metal Loan (GML) Scheme.<\/p>\n\n\n\n<p>The primary goal of GMS was to mobilize idle gold lying with households, temple trusts, and institutions and bring it into the formal economy. By doing so, India aimed to reduce its dependence on gold imports and improve its Current Account Deficit (CAD).<\/p>\n\n\n\n<p>Under this scheme, individuals and institutions could <strong>deposit their idle gold in banks<\/strong> and earn interest on it, instead of keeping it locked away in lockers or homes. On maturity, the depositor could redeem the gold in cash or standard gold bars\/coins.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-was-the-gold-monetisation-scheme-launched\"><span class=\"ez-toc-section\" id=\"Why_was_the_Gold_Monetisation_Scheme_Launched\"><\/span>Why was the Gold Monetisation Scheme Launched?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>India is one of the largest importers of gold in the world. Each year, households and institutions buy gold for savings, investment, or cultural reasons. However, a large portion of this gold remains <strong>idle<\/strong> and does not contribute to economic productivity.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To <strong>mobilize idle gold<\/strong> and put it to productive use.<\/li>\n\n\n\n<li>To <strong>reduce gold imports<\/strong> and ease the burden on India\u2019s balance of payments.<\/li>\n\n\n\n<li>To provide households and institutions with an opportunity to <strong>earn interest<\/strong> on their idle gold.<\/li>\n\n\n\n<li>To create a <strong>formal channel<\/strong> for recycling gold within the economy.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/upcoming-government-exams\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Check Upcoming Govt Exams<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-were-the-components-of-the-gold-monetisation-scheme\"><span class=\"ez-toc-section\" id=\"What_were_the_Components_of_the_Gold_Monetisation_Scheme\"><\/span>What were the Components of the Gold Monetisation Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Gold Monetisation Scheme initially had three deposit categories:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Type of Deposit<\/strong><\/td><td><strong>Tenure &amp; Interest Rate<\/strong><\/td><td><strong>Redemption &amp; Purpose<\/strong><\/td><\/tr><tr><td><strong>Short-Term Bank Deposit (STBD)<\/strong><\/td><td>1\u20133 years, Variable (decided by banks)<\/td><td>Cash or gold; used by banks for lending or domestic needs<\/td><\/tr><tr><td><strong>Medium-Term Government Deposit (MTGD)<\/strong><\/td><td>5\u20137 years, ~2.25%<\/td><td>Cash only; used by government and RBI for reserves<\/td><\/tr><tr><td><strong>Long-Term Government Deposit (LTGD)<\/strong><\/td><td>12\u201315 years, ~2.5%<\/td><td>Cash only; used for monetary policy and gold reserves<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-were-mtgd-and-ltgd-discontinued\"><span class=\"ez-toc-section\" id=\"Why_were_MTGD_and_LTGD_Discontinued\"><\/span>Why were MTGD and LTGD Discontinued?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On 26th March 2025, the Union Government decided to discontinue Medium-Term and Long-Term Government Deposits (MLTGD) under the Gold Monetisation Scheme.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The response to MLTGD was low compared to expectations.<\/li>\n\n\n\n<li>Evolving market conditions made the scheme less effective.<\/li>\n\n\n\n<li>The administrative costs were high compared to the benefits.<\/li>\n<\/ul>\n\n\n\n<p>However, <strong>Short-Term Bank Deposits (STBD)<\/strong> will continue to be offered by banks, allowing depositors to earn interest on gold for shorter periods.<\/p>\n\n\n\n<p><strong>Check Out: <\/strong><a href=\"https:\/\/www.oliveboard.in\/blog\/important-government-schemes-nabard-grade-a\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Complete List of Important Schemes for NABARD Grade A Exam<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-was-eligible-under-the-gold-monetisation-scheme\"><span class=\"ez-toc-section\" id=\"Who_was_Eligible_under_the_Gold_Monetisation_Scheme\"><\/span>Who was Eligible under the Gold Monetisation Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Eligibility criteria included:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Resident individuals (above 18 years).<\/li>\n\n\n\n<li>Trusts and institutions, including temple trusts.<\/li>\n\n\n\n<li>Companies and firms.<\/li>\n\n\n\n<li>Government entities.<\/li>\n\n\n\n<li>Hindu Undivided Families (HUFs).<\/li>\n\n\n\n<li>Non-Resident Indians (NRIs) were allowed to participate in certain categories, like Sovereign Gold Bonds (SGBs), but not in all GMS deposits.<\/li>\n<\/ul>\n\n\n\n<p>Basic KYC documents like Aadhaar, PAN, and details of deposited gold were required.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/test-series\/?ref=contac-ai\" target=\"_blank\" rel=\"noreferrer noopener\">Attempt a free mock test Now!<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-were-the-benefits-of-the-gold-monetisation-scheme\"><span class=\"ez-toc-section\" id=\"What_were_the_Benefits_of_the_Gold_Monetisation_Scheme\"><\/span>What were the Benefits of the Gold Monetisation Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The benefits of the gold menotisation scheme are as follows:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Earn interest on idle gold.<\/li>\n\n\n\n<li>Tax exemptions on interest and capital gains.<\/li>\n\n\n\n<li>Safe storage in bank\/refinery vaults.<\/li>\n\n\n\n<li>Withdraw gold\/cash after maturity or prematurely.<\/li>\n\n\n\n<li>Loans up to 75% of gold value.<\/li>\n\n\n\n<li>Gold valued at international LBMA prices.<\/li>\n<\/ol>\n\n\n\n<p><strong>Also Check: <a href=\"https:\/\/www.oliveboard.in\/blog\/government-schemes\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">List of Government Schemes of India<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-were-the-challenges-faced-by-the-scheme\"><span class=\"ez-toc-section\" id=\"What_were_the_Challenges_Faced_by_the_Scheme\"><\/span>What were the Challenges Faced by the Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Despite its objectives, the scheme faced multiple hurdles:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cultural and emotional attachment:<\/strong> Households were reluctant to part with jewellery due to traditional and sentimental value.<\/li>\n\n\n\n<li><strong>Awareness gap:<\/strong> Many people were unaware of the scheme\u2019s benefits.<\/li>\n\n\n\n<li><strong>Low interest rates:<\/strong> Returns were seen as unattractive compared to potential appreciation in gold prices.<\/li>\n\n\n\n<li><strong>Certification issues:<\/strong> Limited BIS-certified refineries and jewelers made gold testing difficult.<\/li>\n\n\n\n<li><strong>Fear of taxation:<\/strong> Lack of purchase receipts discouraged households from depositing gold.<\/li>\n\n\n\n<li><strong>Reluctance of banks:<\/strong> Banks did not actively promote the scheme due to low profitability.<\/li>\n<\/ul>\n\n\n\n<p><strong>Get ready to crack government job exams with leading educators<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/courses\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Enroll in Online Live Classes Today!<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-is-the-gold-monetisation-scheme-different-from-sovereign-gold-bonds\"><span class=\"ez-toc-section\" id=\"How_is_the_Gold_Monetisation_Scheme_different_from_Sovereign_Gold_Bonds\"><\/span>How is the Gold Monetisation Scheme different from Sovereign Gold Bonds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The features based on the differences between the gold monetization scheme and the soverign gold bonds are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>Gold Monetisation Scheme (GMS)<\/strong><\/td><td><strong>Sovereign Gold Bonds (SGB)<\/strong><\/td><\/tr><tr><td>Launched<\/td><td>2015<\/td><td>2015<\/td><\/tr><tr><td>Nature<\/td><td>Deposit scheme for idle gold<\/td><td>Financial instrument (bond)<\/td><\/tr><tr><td>Return<\/td><td>Interest (2\u20133%) + gold value<\/td><td>2.5% interest + gold price appreciation<\/td><\/tr><tr><td>Redemption<\/td><td>Cash or gold (bars\/coins)<\/td><td>Cash only<\/td><\/tr><tr><td>Objective<\/td><td>Mobilize idle gold<\/td><td>Reduce demand for physical gold<\/td><\/tr><tr><td>Eligibility<\/td><td>Individuals, HUFs, trusts, companies, institutions<\/td><td>Resident individuals, HUFs, trusts, universities, and charitable institutions<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaway-table\"><span class=\"ez-toc-section\" id=\"Key_Takeaway_Table\"><\/span>Key Takeaway Table<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Aspect<\/strong><\/td><td><strong>Details<\/strong><\/td><\/tr><tr><td><strong>Launched<\/strong><\/td><td>November 2015<\/td><\/tr><tr><td><strong>Administered by<\/strong><\/td><td>Ministry of Finance, RBI<\/td><\/tr><tr><td><strong>Objective<\/strong><\/td><td>Mobilize idle gold, reduce imports, ease CAD<\/td><\/tr><tr><td><strong>Components<\/strong><\/td><td>STBD (1\u20133 years), MTGD (5\u20137 years), LTGD (12\u201315 years)<\/td><\/tr><tr><td><strong>Interest Rates<\/strong><\/td><td>STBD \u2013 variable (banks), MTGD \u2013 2.25%, LTGD \u2013 2.5%<\/td><\/tr><tr><td><strong>Redemption<\/strong><\/td><td>STBD \u2013 gold\/cash; MTGD &amp; LTGD \u2013 cash only<\/td><\/tr><tr><td><strong>Eligibility<\/strong><\/td><td>Individuals, HUFs, trusts, companies, govt entities<\/td><\/tr><tr><td><strong>Tax Benefits<\/strong><\/td><td>Exemption from income tax, wealth tax, and capital gains tax<\/td><\/tr><tr><td><strong>Status (2025)<\/strong><\/td><td>MTGD and LTGD discontinued; STBD continues<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.oliveboard.in\/previous-year-papers\/?ref=contac-ai\" target=\"_blank\" rel=\"noreferrer noopener\">Solve Free Previous Year Papers Today<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-questions-on-gold-monetisation-scheme\"><span class=\"ez-toc-section\" id=\"Questions_on_Gold_Monetisation_Scheme\"><\/span>Questions on Gold Monetisation Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Q1. The Gold Monetisation Scheme was launched in which year?<\/strong><\/p>\n\n\n\n<p>a) 2010<br>b) 2013<br>c) 2015<br>d) 2017<br>e) 2020<br><strong>Answer:<\/strong> c) 2015<\/p>\n\n\n\n<p><strong>Q2. Which ministry administers the Gold Monetisation Scheme?<\/strong><\/p>\n\n\n\n<p>a) Ministry of Commerce and Industry<br>b) Ministry of Finance<br>c) Ministry of Rural Development<br>d) Ministry of Consumer Affairs<br>e) Ministry of Corporate Affairs<br><strong>Answer:<\/strong> b) Ministry of Finance<\/p>\n\n\n\n<p><strong>Q3. What was the interest rate for Long-Term Government Deposits (LTGD) under GMS?<\/strong><\/p>\n\n\n\n<p>a) 1%<br>b) 1.5%<br>c) 2%<br>d) 2.5%<br>e) 3%<br><strong>Answer:<\/strong> d) 2.5%<\/p>\n\n\n\n<p><strong>Q4. Which components of GMS were discontinued in March 2025?<\/strong><\/p>\n\n\n\n<p>a) Only STBD<br>b) Only LTGD<br>c) MTGD and LTGD<br>d) STBD and MTGD<br>e) None of the above<br><strong>Answer:<\/strong> c) MTGD and LTGD<\/p>\n\n\n\n<p><strong>Q5. Under GMS, who was eligible to deposit gold?<\/strong><\/p>\n\n\n\n<p>a) Only individuals<br>b) Only government institutions<br>c) Only HUFs<br>d) Individuals, HUFs, trusts, institutions, government entities<br>e) Only NRIs<br><strong>Answer:<\/strong> d) Individuals, HUFs, trusts, institutions, government entities<\/p>\n\n\n\n<p><strong>Also Read:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Government Schemes<\/strong><\/td><td><strong>Government Schemes<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/www.oliveboard.in\/blog\/one-nation-one-subscription-onos\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">One Nation One Subscription<\/a><\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/ayushman-bharat-scheme\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Ayushman Bharat Scheme<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.oliveboard.in\/blog\/aatmanirbharta-in-pulses\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Aatmanirbharta in Pulses<\/a><\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/national-broadband-mission-2-0\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">National Broadband Mission 2.0<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.oliveboard.in\/blog\/pm-dhan-dhaanya-krishi-yojana-pmddky\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Pradhan Mantri Dhan Krishi Yojana<\/a><\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/stand-up-india-scheme\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">Stand Up India Scheme<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/www.oliveboard.in\/blog\/gst-2-0\/?ref=contc-aib\" target=\"_blank\" rel=\"noreferrer noopener\">All About GST 2.0<\/a><\/td><td><a href=\"https:\/\/www.oliveboard.in\/blog\/green-credit-program-earn-rewards-for-a-greener-world\/?ref=contac-aib\" target=\"_blank\" rel=\"noreferrer noopener\">National Green Credit Programme<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Q6. Which of the following is NOT a feature of GMS?<\/strong><\/p>\n\n\n\n<p>a) Premature withdrawal allowed<br>b) Interest exempt from income tax<br>c) Redemption in jewellery form<br>d) Loans up to 75% of value allowed<br>e) Gold valued at international prices<br><strong>Answer:<\/strong> c) Redemption in jewellery form<\/p>\n\n\n\n<p><strong>Q7. What was the main objective of GMS?<\/strong><\/p>\n\n\n\n<p>a) Increase gold imports<br>b) Reduce fiscal deficit<br>c) Mobilize idle gold and reduce imports<br>d) Promote agricultural exports<br>e) Support only urban savings<br><strong>Answer:<\/strong> c) Mobilize idle gold and reduce imports<\/p>\n\n\n\n<p><strong>Q8. The Indian Gold Coin Initiative was launched alongside which schemes in 2015?<\/strong><\/p>\n\n\n\n<p>a) GMS and PMJDY<br>b) SGB and GMS<br>c) NPS and APY<br>d) PMSBY and PMJJBY<br>e) UDAY and GMS<br><strong>Answer:<\/strong> b) SGB and GMS<\/p>\n\n\n\n<p><strong>Q9. Which body decides the interest rate for Short-Term Bank Deposits under GMS?<\/strong><\/p>\n\n\n\n<p>a) RBI<br>b) Union Government<br>c) Banks themselves<br>d) NITI Aayog<br>e) SEBI<br><strong>Answer:<\/strong> c) Banks themselves<\/p>\n\n\n\n<p><strong>Q10. Which of the following is true about Sovereign Gold Bonds (SGBs)?<\/strong><\/p>\n\n\n\n<p>a) They are issued in jewellery form<br>b) They provide 2.5% interest + gold price appreciation<br>c) They are exempt from all taxes<br>d) They can be redeemed in gold coins only<br>e) They were launched in 2010<br><strong>Answer:<\/strong> b) They provide 2.5% interest + gold price appreciation<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<ul class=\"wp-block-latest-posts__list is-grid columns-3 wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/how-to-clear-multiple-government-exams\/\">How Some Aspirants Clear Multiple Government Exams: Strategy, Discipline &amp; Exam Psychology<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/crop-diversification-program\/\">Crop Diversification Program, Transforming Indian Agriculture<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/important-government-schemes-nabard-grade-a\/\">Government Schemes for NABARD Grade A 2026<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/national-dairy-plan-phase-1-phase-2\/\">National Dairy Plan Phase 1 and Phase 2, Boosting India\u2019s Dairy Sector<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/mera-gaon-mera-gaurav-scheme\/\">Mera Gaon Mera Gaurav Scheme, Bridging Lab to Land<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/www.oliveboard.in\/blog\/farmers-first-initiative\/\">Farmers First Initiative, Empowering Farmers Through Innovation<\/a><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>The Gold Monetisation Scheme (GMS) was launched in November 2015 by the Government of India. It was designed as an<\/p>\n","protected":false},"author":58,"featured_media":229732,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14458,11544],"tags":[],"class_list":["post-229731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government-scheme","category-static-gk","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges<\/title>\n<meta name=\"description\" content=\"Learn about the Gold Monetisation Scheme&#039;s objectives, including reducing India&#039;s gold imports and improving the economy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges\" \/>\n<meta property=\"og:description\" content=\"The Gold Monetisation Scheme (GMS) was launched in November 2015 by the Government of India. It was designed as an improved version of earlier schemes\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/\" \/>\n<meta property=\"og:site_name\" content=\"Oliveboard\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Oliveboard\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-30T06:01:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-30T06:01:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"730\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"AditiOB\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Oliveboard\" \/>\n<meta name=\"twitter:site\" content=\"@Oliveboard\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"AditiOB\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/\"},\"author\":{\"name\":\"AditiOB\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/0cbc4ac8555ced346681804861de062c\"},\"headline\":\"Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges\",\"datePublished\":\"2025-09-30T06:01:47+00:00\",\"dateModified\":\"2025-09-30T06:01:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/\"},\"wordCount\":1165,\"publisher\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp\",\"articleSection\":[\"Government Scheme\",\"Static GK\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/\",\"name\":\"Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges\",\"isPartOf\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp\",\"datePublished\":\"2025-09-30T06:01:47+00:00\",\"dateModified\":\"2025-09-30T06:01:57+00:00\",\"description\":\"Learn about the Gold Monetisation Scheme's objectives, including reducing India's gold imports and improving the economy.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#primaryimage\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp\",\"contentUrl\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp\",\"width\":730,\"height\":480},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.oliveboard.in\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Government Scheme\",\"item\":\"https:\/\/www.oliveboard.in\/blog\/category\/government-scheme\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Gold Monetisation Scheme\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#website\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/\",\"name\":\"Oliveboard\",\"description\":\"Free Govt. Exam Alerts &amp; Resources\",\"publisher\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.oliveboard.in\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#organization\",\"name\":\"Oliveboard\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2021\/11\/logo.png\",\"contentUrl\":\"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2021\/11\/logo.png\",\"width\":150,\"height\":40,\"caption\":\"Oliveboard\"},\"image\":{\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Oliveboard\",\"https:\/\/x.com\/Oliveboard\",\"https:\/\/www.instagram.com\/oliveboard.in\/\",\"https:\/\/www.youtube.com\/channel\/UCRvrHAyNdOMI_JBkE2pjZtw?sub_confirmation=1\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/0cbc4ac8555ced346681804861de062c\",\"name\":\"AditiOB\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/d1e881725409eac0bd9260c141e2a522d2a6a86c9dfeba73e8523e493f39e045?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/d1e881725409eac0bd9260c141e2a522d2a6a86c9dfeba73e8523e493f39e045?s=96&d=mm&r=g\",\"caption\":\"AditiOB\"},\"description\":\"Hi, I\u2019m Aditi. I work as a Content Writer at Oliveboard, where I have been simplifying exam-related content for the past 4 years. I create clear and easy-to-understand guides for JAIIB, CAIIB, and UGC exams. My work includes breaking down notifications, admit cards, and exam updates, as well as preparing study plans and subject-wise strategies. My goal is to support working professionals in managing their exam preparation alongside a full-time job and to help them achieve career growth.\",\"sameAs\":[\"www.linkedin.com\/in\/aditi-chakraborty-131b3b379\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges","description":"Learn about the Gold Monetisation Scheme's objectives, including reducing India's gold imports and improving the economy.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/","og_locale":"en_US","og_type":"article","og_title":"Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges","og_description":"The Gold Monetisation Scheme (GMS) was launched in November 2015 by the Government of India. It was designed as an improved version of earlier schemes","og_url":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/","og_site_name":"Oliveboard","article_publisher":"https:\/\/www.facebook.com\/Oliveboard","article_published_time":"2025-09-30T06:01:47+00:00","article_modified_time":"2025-09-30T06:01:57+00:00","og_image":[{"width":730,"height":480,"url":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp","type":"image\/webp"}],"author":"AditiOB","twitter_card":"summary_large_image","twitter_creator":"@Oliveboard","twitter_site":"@Oliveboard","twitter_misc":{"Written by":"AditiOB","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#article","isPartOf":{"@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/"},"author":{"name":"AditiOB","@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/0cbc4ac8555ced346681804861de062c"},"headline":"Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges","datePublished":"2025-09-30T06:01:47+00:00","dateModified":"2025-09-30T06:01:57+00:00","mainEntityOfPage":{"@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/"},"wordCount":1165,"publisher":{"@id":"https:\/\/www.oliveboard.in\/blog\/#organization"},"image":{"@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp","articleSection":["Government Scheme","Static GK"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/","url":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/","name":"Gold Monetisation Scheme, Objectives, Features, Benefits, and Challenges","isPartOf":{"@id":"https:\/\/www.oliveboard.in\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#primaryimage"},"image":{"@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#primaryimage"},"thumbnailUrl":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp","datePublished":"2025-09-30T06:01:47+00:00","dateModified":"2025-09-30T06:01:57+00:00","description":"Learn about the Gold Monetisation Scheme's objectives, including reducing India's gold imports and improving the economy.","breadcrumb":{"@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#primaryimage","url":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp","contentUrl":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2025\/09\/gold-monetization-scheme-1.webp","width":730,"height":480},{"@type":"BreadcrumbList","@id":"https:\/\/www.oliveboard.in\/blog\/gold-monetisation-scheme\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.oliveboard.in\/blog\/"},{"@type":"ListItem","position":2,"name":"Government Scheme","item":"https:\/\/www.oliveboard.in\/blog\/category\/government-scheme\/"},{"@type":"ListItem","position":3,"name":"Gold Monetisation Scheme"}]},{"@type":"WebSite","@id":"https:\/\/www.oliveboard.in\/blog\/#website","url":"https:\/\/www.oliveboard.in\/blog\/","name":"Oliveboard","description":"Free Govt. Exam Alerts &amp; Resources","publisher":{"@id":"https:\/\/www.oliveboard.in\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.oliveboard.in\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.oliveboard.in\/blog\/#organization","name":"Oliveboard","url":"https:\/\/www.oliveboard.in\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2021\/11\/logo.png","contentUrl":"https:\/\/www.oliveboard.in\/blog\/wp-content\/uploads\/2021\/11\/logo.png","width":150,"height":40,"caption":"Oliveboard"},"image":{"@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Oliveboard","https:\/\/x.com\/Oliveboard","https:\/\/www.instagram.com\/oliveboard.in\/","https:\/\/www.youtube.com\/channel\/UCRvrHAyNdOMI_JBkE2pjZtw?sub_confirmation=1"]},{"@type":"Person","@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/0cbc4ac8555ced346681804861de062c","name":"AditiOB","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.oliveboard.in\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d1e881725409eac0bd9260c141e2a522d2a6a86c9dfeba73e8523e493f39e045?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d1e881725409eac0bd9260c141e2a522d2a6a86c9dfeba73e8523e493f39e045?s=96&d=mm&r=g","caption":"AditiOB"},"description":"Hi, I\u2019m Aditi. I work as a Content Writer at Oliveboard, where I have been simplifying exam-related content for the past 4 years. I create clear and easy-to-understand guides for JAIIB, CAIIB, and UGC exams. My work includes breaking down notifications, admit cards, and exam updates, as well as preparing study plans and subject-wise strategies. My goal is to support working professionals in managing their exam preparation alongside a full-time job and to help them achieve career growth.","sameAs":["www.linkedin.com\/in\/aditi-chakraborty-131b3b379"]}]}},"_links":{"self":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/229731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/users\/58"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/comments?post=229731"}],"version-history":[{"count":1,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/229731\/revisions"}],"predecessor-version":[{"id":229738,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/posts\/229731\/revisions\/229738"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/media\/229732"}],"wp:attachment":[{"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/media?parent=229731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/categories?post=229731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oliveboard.in\/blog\/wp-json\/wp\/v2\/tags?post=229731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}