Monday, March 31, 2025
Your Website Title
spot_img
HomeTodayGold priceIndia Halts Key Gold Deposit Schemes – Find Out Why!

India Halts Key Gold Deposit Schemes – Find Out Why!

Trulli

The Indian government has decided to stop offering medium- and long-term gold deposit schemes under the Gold Monetisation Scheme (GMS). This decision was made due to changing market conditions and the overall performance of the scheme.

The 5-to-7-year and 12-to-15-year deposit options are no longer available. However, banks can still provide short-term gold deposit schemes if they find it profitable, the Finance Ministry announced on Tuesday.

Trulli

Also Read: Stock Market Update Toady: Sensex Gains Over 100 Points, Nifty Above 23,700

Why This Change?

The government wants to reduce financial risks and manage its future obligations as gold prices continue to rise. In the past, the government covered interest costs for medium- and long-term deposits, while banks handled interest for short-term deposits.

Gold Prices and Market Impact

Gold prices have increased by over 15% since the beginning of 2025. This rise is due to global uncertainties, such as geopolitical tensions and changes in U.S. trade policies. Gold is a popular investment in India, as people consider it a safe option during economic instability.

Even though new medium- and long-term deposits won’t be accepted, existing deposits will continue until they mature, the Finance Ministry confirmed. The Reserve Bank of India (RBI) has also updated its guidelines to reflect these changes.

Also See: Investor Alert: Goldman’s ‘Alpha List’ Could Reshape 2025 Market Trends

Background

The Gold Monetisation Scheme was launched in 2015 to encourage people and institutions to deposit unused gold in exchange for interest. The latest changes suggest that the government is adjusting its policies to better manage its gold-related financial responsibilities in today’s changing market

Image Slider
Image 1 Image 2 Image 3

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
RELATED ARTICLES
spot_img
spot_img
spot_img

POLL

- Advertisment -spot_imgspot_img

Most Popular

Recent Comments