Medium-Term Government Deposit And Long-Term Government Deposit Discontinued

The Medium-Term Government Deposit (MTGD) and Long-Term Government Deposit (LTGD) components of the Gold Monetisation Scheme (GMS) discontinued from March 26, 2025.
 

However, existing deposits under these categories will continue until maturity as per the Reserve Bank of India (RBI) guidelines.
 

About the Gold Monetisation Scheme (GMS)
 

Launch and Objective
 

The Gold Monetisation Scheme was introduced in 2015 to address India’s high gold imports and to encourage the mobilization of household and institutional gold for productive economic use.
 

Implementation
 

The scheme is implemented by all Scheduled Commercial Banks, except for Regional Rural Banks (RRBs).
 

Categories of Deposits Under GMS
 

The scheme initially offered three types of deposits:
 

1. Short-Term Bank Deposit (STBD)
   1. Duration: 1 to 3 years
   2. Managed by: Banks
   3. Allows individuals and institutions to deposit gold and earn interest.
2. Medium-Term Government Deposit (MTGD) – Now Discontinued
   1. Duration: 5 to 7 years
   2. Managed by: Government of India
   3. Offered higher interest rates compared to STBD.
3. Long-Term Government Deposit (LTGD) – Now Discontinued
   1. Duration: 12 to 15 years
   2. Managed by: Government of India
   3. Designed for long-term gold investment with attractive interest benefits.
       

Impact of Discontinuation
 

1. Only STBD will remain active for new deposits after March 26, 2025.
2. Existing MTGD and LTGD deposits will continue as per RBI guidelines until they reach maturity.
    

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