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India discontinues parts of gold deposit scheme amid rising prices


Published on 2025-03-26 01:01:03 - Reuters
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  • India has discontinued parts of a scheme that encouraged households and institutions to deposit idle gold in exchange for interest payments.

The Indian government has decided to discontinue certain components of the Gold Monetisation Scheme (GMS) due to rising gold prices and low participation rates. Launched in 2015, the GMS aimed to mobilize idle gold held by households and institutions by allowing them to deposit gold and earn interest. However, the scheme's short-term deposit options, which included a one-year and a three-year deposit, have been terminated. This decision comes as gold prices have surged, making the scheme less attractive for depositors. The government will now focus on the medium and long-term deposit options, which offer better returns over extended periods. This move is part of broader efforts to manage the economic implications of high gold prices and to encourage more effective utilization of gold reserves within the country.

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[ https://www.msn.com/en-us/money/other/india-discontinues-parts-of-gold-deposit-scheme-amid-rising-prices/ar-AA1BFkaP ]