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India is a huge market for gold and gold jewellery and thus has an abundance of gold reserves within its millions of households. The government has therefore come out with the Gold Monetisation Scheme which enables such gold holders/owners to earn interest on their gold deposits. This scheme of the government is aimed at eventually reducing the dependency of the government on gold imports and thereby giving a slight push in improving our economy.

The government has designated ICICI bank to be one of the authorized banks eligible to implement this scheme at some of its specially designated branches.

Features of ICICI Bank Gold Monetisation Scheme

Icici Bank Gold Deposit Scheme

ICICI Bank has three types of Gold Deposit Schemes, i.e., Short Term, Medium Term and Long term, (however, the short term gold deposit scheme is currently not available for the bank’s customers) to choose from and avail the benefit of interest and many other benefits depending on the plan which best suit their needs. The minimum amount of gold to be deposited under the scheme is 30 grams of raw gold in any form like bars, coins, jewellery but does not include stones and other metal. The bank has no upper limit on the amount of gold that a person can deposit under the scheme. The bank takes a period of 30 days to create the deposit from the time of acceptance at the refinery or the refiner’s purity testing centre. The principal (P) is denominated in grams of gold with purity of 995. The bank pays interest on the gold deposits annually on 31st of March or on the date of maturity, whichever is earlier.

Following are some of the features of the bank’s gold scheme enlisted below.


Deposit held by

In books of ICICI Bank

On behalf of Central Government

On behalf of Central Government

Interest rate decided by


Central Government

Central Government


1-3 years

5-7 years

12-15 years

Current Interest rates




Minimum Lock-in

At bank discretion

3 years

5 years

Penal Interest

At bank discretion

greater than3 and less than5 (MTGD interest less 0.375%)
greater than=5 and lessthan7 (MTGD interest less 0.25%)

greater than5 and lessthan7 (MTGD interest less 0.25%)
greater than=7 and lessthan12 (LTGD interest less 0.375%)
greater than=12 and lessthan15 (LTGD interest less 0.25%)

Interest denominated in


Interest paid in INR on  the value of gold at the date of creation of deposit

Interest paid in INR on the value of gold at the date of creation of deposit

Redemption of Principal and Interest denominated in

Principal and Interest paid in gold or INR at the option of the depositor at the time of creation of deposit

P & I – in INR only P - will be paid on the value of gold prevailing on the maturity date of deposit

P & I – in INR only P - will be paid on the value of gold prevailing on the maturity date of deposit

Benefits of opening a Gold Deposit with ICICI

There are a host of benefits that the customers can get from depositing their gold with the ICICI Gold Monetisation Scheme. Some of them are mentioned here.

  • Customers can get interest on their gold deposited under the scheme that would have been otherwise lying ideal, instead of only paying locker charges to keep the gold safe.
  • Customers can be assured of the safety of the gold as it is securely maintained by the bank.
  • Earnings of the customer under the scheme are exempt from any wealth tax, income tax or capital gains tax. This exemption includes the appreciation on the value of the gold as well as the interest earned from the deposit scheme.
  • The bank also enables the customers to know the purity of the gold by way of checking the same through the various Refiners that the bank has a tie-up with.

Interest payment

The interest on the deposit scheme is a tax free income at the hands of the depositor. The interest rate on the gold deposit is decided by the Central Government in case of Medium Term/ Long term Gold Deposit Scheme. However, the bank has the liberty to decide the same in case of Short Term Gold Deposit. The current interest rate on medium term and long term gold deposit is 2.25% and 2.5 % respectively. The bank also has a provision for penal interest on the deposit scheme in the event of a default as per the guidelines of the bank in this regard.

The interest earned on the gold deposited is paid annually on 31st March or at the maturity date whichever is earlier. Interest is denominated in gold in case of short term gold deposit scheme and INR in other cases which will be paid on the value of the gold at the time of creation of deposit.

Eligibility Criteria

The eligibility criteria for ICICI Bank Gold Monetisation Scheme are twofold. The eligible customers for the scheme are following Resident Indians

  • Individuals
  • HUFs
  • Trusts
  • Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations and Companies

The rules for opening the gold deposit account are the same as any other deposit account with respect to customer identification.

The other important criterion is to hold a savings/current account with the bank before opening the deposit scheme as the interest so earned on the gold deposit scheme will be credited in such savings/current account of the depositor.

If the depositor does not have an existing relationship with the bank, he/she has to open the savings/current account after duly complying the KYC norms of the bank.

Documents Required

  • Customers can enroll with the gold monetisation scheme of the bank by going to the designated branches with their gold and filling the GMS Application Form and submitting the same to the branch executive.
  • Customers will receive a counterfoil against the application form which has to be shown at the Refiner’s Purity Verification and Testing Centre (PVC) directed by the branch executive.
  • Customers have to hand over the gold at the centre where it will undergo assaying and melting process to assess the gold quantity and purity. Customers will be given a deposit receipt at the centre mentioning the gold’s quantity and purity 995 the same has to be submitted at the designated branch within 30 days either by personally visiting the branch or by post.
  • The branch office will create a gold deposit on the 30th day from the date of receiving the gold from the PVC and will issue a gold deposit certificate that will mention the
  • Gold quantity
  • Purity
  • Tenure
  • Interest rate applicable
  • Maturity date

In case a customer does not have an account with the bank (savings/current), the same has to be opened first before the above procedure.

The bank will accept the gold deposits only at their designated branches under the scheme. Such a deposit will be held on behalf of the government under the medium term or long term gold deposit scheme.


1. Do the customers get their gold in the same form as deposited?

The customers do not get their gold in the same form as the jewellery/ornaments deposited will be melted and assayed by the PVC.

2.o the customers receive interest in the form of gold?

Customers will receive interest in INR only at the maturity of the deposit or annually on 31st March whichever is earlier.

3. Can the customers enroll in the gold deposit scheme under joint names?

The bank facilitates the customers to enroll in Gold Deposit Schemes jointly by opening a FD in joint names.

4.What will be the start date of the gold deposit of any customer?

The start date of the deposit is when the deposit is created on the 30th day of receipt of gold from the PVC when the interest on the deposit will start to accrue.

5. Does the scheme permit minors to be eligible investors?

The scheme permits the customers to subscribe to the scheme on behalf of a minor.

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