Gold Monetization Scheme: How to Earn Interest on Your Gold in India

When you have gold lying around—jewelry, coins, bars—you’re not just holding onto metal, you’re holding onto Gold Monetization Scheme, a government-backed program in India that lets you earn interest on your idle gold by depositing it with authorized banks. Also known as the Gold Deposit Scheme, it turns your unused gold into a financial asset instead of just a store of value. This isn’t about selling your gold. It’s about using it while still keeping ownership rights.

The scheme works by letting you deposit your gold with banks that are authorized by the Reserve Bank of India. In return, you get interest paid in cash—typically between 2.25% and 2.5% per year—based on the weight and purity of your gold. You can choose deposit terms of 1, 3, or 15 years. The longer you lock it in, the higher the return. Your gold is melted, assayed for purity, and stored securely by the bank. At the end of the term, you get back the same weight of gold in the form of bullion or coins, not jewelry.

This isn’t just for wealthy families with heirloom pieces. Even if you have a few grams of old gold bangles or a broken chain, you can still participate. The minimum deposit is just 30 grams of gold with 995 fineness (99.5% pure). That’s less than a typical wedding ring. And unlike keeping gold at home, where it’s at risk of theft or loss, the scheme gives you government-backed security and tax benefits. The interest you earn is taxable, but the gold you get back is not subject to capital gains tax if held until maturity.

Many people don’t realize that India holds over 25,000 tonnes of idle gold—more than most central banks. The Gold Monetization Scheme, a government-backed program in India that lets you earn interest on your idle gold by depositing it with authorized banks. Also known as Gold Deposit Scheme, it turns your unused gold into a financial asset instead of just a store of value. is designed to bring that gold into the formal economy, reducing the country’s reliance on gold imports. For you, it means turning a passive asset into something that works for you.

There are a few things to watch out for. You can’t deposit jewelry with stones or mixed metals. The bank will deduct the weight of non-gold parts. You also can’t withdraw early without losing the interest benefit. And if you’re looking for quick cash, this isn’t the right option—it’s a long-term play.

But if you’ve got gold you don’t wear, don’t need, or just don’t know what to do with, this scheme gives you a rare chance to earn real returns without selling it. It’s not flashy. It’s not get-rich-quick. But for millions of Indian households sitting on unused gold, it’s one of the smartest, safest financial moves they’ve never considered.

Below, you’ll find real guides and clear breakdowns from people who’ve used the scheme, what banks offer, how to calculate your returns, and what to avoid. No fluff. Just what works.