Gold Monetization Scheme: MLTGD Discontinued from March 26, 2025
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2024-25/132 · issued 25 Mar 2025 · ~2 min read
Quick answerGovernment discontinues Medium and Long Term Government Deposit (MLTGD) component of Gold Monetization Scheme from March 26, 2025. Banks can still offer Short Term Bank Deposits (STBD) at their discretion. Existing MLTGD deposits will continue till redemption.
What changed
The Medium and Long Term Government Deposit (MLTGD) component of the Gold Monetization Scheme (GMS) has been discontinued effective March 26, 2025. No new MLTGD deposits or renewals will be accepted after March 25, 2025. Existing MLTGD deposits mobilized before this date will continue as per existing guidelines until redemption.
What it means for you
Banks can no longer accept gold deposits under the MLTGD category, which offered 5-7 year medium term or 12-15 year long term government deposits. However, banks retain the discretion to offer Short Term Bank Deposits (STBD) under GMS. This reduces the product suite for gold monetization but keeps the short-term option available. Banks must update their internal systems and customer communication to reflect this change.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Stop accepting new MLTGD deposits and renewals from March 26, 2025.
Update internal guidelines, customer-facing documents, and digital platforms to remove MLTGD references.
Communicate the change to branch staff and customers, clarifying that STBD remains available at bank's discretion.
Ensure existing MLTGD deposits are managed per extant guidelines until redemption.
Review and update the Master Direction amendments as per the RBI circular.
Who it affects
All Scheduled Commercial Banks (excluding Regional Rural Banks), Designated banks under GMS, Customers holding or planning MLTGD deposits, Collection and Purity Testing Centres (CPTC) and GMS Mobilisation, Collection & Testing Agents (GMCTA)
❓ Common questions
Regulatory timeline
Stated effective dateeffective March 26, 2025
Decoded by BankPulse2026-06-18 02:18 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Can banks still offer gold deposits under GMS after March 25, 2025?
Yes, banks may offer Short Term Bank Deposits (STBD) under GMS at their discretion. However, the Medium and Long Term Government Deposit (MLTGD) component is discontinued from March 26, 2025.
What happens to existing MLTGD deposits?
Existing MLTGD deposits mobilized on or before March 25, 2025 will continue as per the existing guidelines until their redemption. No new deposits or renewals under MLTGD are allowed after this date.
Is this change applicable to all banks?
This circular applies to all Scheduled Commercial Banks except Regional Rural Banks (RRBs).
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/132
DoR.AUT.REC.71/23.67.001/2024-25
March 25, 2025
Madam/Dear Sir
Gold Monetization Scheme (GMS), 2015 - Amendment
Government of India, vide its press release ID 2115009 dated March 25, 2025 regarding Gold Monetization Scheme (GMS) has decided to discontinue the Medium Term and Long Term Government Deposit (MLTGD) components of GMS with effect from March 26, 2025. Accordingly, any gold deposits tendered at the designated Collection and Purity Testing Centre (CPTC) or GMS Mobilisation, Collection & Testing Agent (GMCTA) or the designated bank branches towards MLTGD component of GMS shall not be accepted after March 25, 2025. The designated banks, at their discretion, may offer Short Term Bank Deposits (STBD) under GMS. The MLTGD mobilized till March 25, 2025 shall continue till redemption as per the extant guidelines.
2. Accordingly, in exercise of the powers conferred on the Reserve Bank of India under Section 35A of the Banking Regulation Act, 1949, the Master Direction No.DBR.IBD.No.45/23.67.003/2015-16 dated October 22, 2015 on Gold Monetization Scheme, 2015 is being amended. The amended provisions of the Master Direction are enclosed in the Annex to this circular.
3. Frequently Asked Questions relating to the provisions contained in the Master Direction are also being updated.
Commencement
4. The amended provisions contained in this circular shall come into effect from March 26, 2025. The Master Direction is hereby updated to reflect the changes effected by the amendments to the Scheme.
Applicability
5. This circular is applicable to all Scheduled Commercial Banks (other than Regional Rural Banks).
Yours faithfully,
Manoranjan Padhy
Chief General Manager
Annex
List of amendments to the existing provisions of the Master Direction
Para of MD
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/132 · issued 25 Mar 2025. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12801&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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