NEW DELHI, March 26 (Xinhua) -- The Indian government has decided to discontinue parts of the gold deposit scheme known as the Gold Monetisation Scheme (GMS) from Wednesday, the Ministry of Finance said.

"Based on the examination of the performance of the GMS and evolving market conditions, it has been decided to discontinue the Medium Term and Long Term Government Deposit (MLTGD) components of the GMS w.e.f. March 26, 2025," the ministry said.

The GMS was introduced on Sept. 15, 2015, with the objective to reduce the country's reliance on the import of gold in the long run and mobilize gold held by households and institutions in the country to facilitate its use for productive purposes.

The scheme encouraged people and institutions to deposit gold in exchange for payments in the form of interest.

The GMS included gold deposits for short-term bank deposit (1-3 years), medium-term government deposit (5-7 years), and long-term government deposit (12-15 years).

The ministry, however, said the banks may continue their short-term gold deposit schemes.

"Further, the STBD offered by the banks under GMS shall continue at the discretion of the individual banks based on the commercial viability as assessed by them," the ministry said, adding that the detailed guidelines of the country's central banking institution, Reserve Bank of India, in this regard shall follow.

Reports said the prices of gold have risen more than 15 percent this year in the wake of geopolitical tensions and uncertainties over U.S. tariff policy. Enditem

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