Gold Monetization Scheme Review: 2026 Updated

By Team Gullak

Last updated : Oct 1, 2026

4 min read

Is your gold sitting idle? Do you want to get more returns from your gold and want to make it work for you?

In this article, we will discuss one such scheme called Gold monetization scheme. We will understand how the scheme works, gold monetization scheme interest rate, pros and cons & compare it against other popular gold schemes.

What is Gold Monetization scheme?

The Gold monetization scheme(GMS) is a government initiative that allows you to earn extra interest on your idle gold. Under this scheme, you can deposit your gold at your home(like coins or jewellery) to banks. These banks convert this into bullion and lend it to jewellers. These jewellers in turn pay extra interest to the users on the leased gold.

Scheme details:

Gold monetization scheme interest rate: 2.25% p.a.(For the medium-term plan) or 2.5% (For the long-term plan)

Form of interest: INR

Tenure/Lockin period: 5-7 years(medium-term plan) or 15-17 years(long-term plan)

Minimum investment: 10gms

Transaction type: Existing gold at home

Gullak as an alternative to earn Extra Interest

Gullak as an alternative to accumulate Gold

Gullak is a digital gold savings platform that allows you to build your gold holdings systematically every day. Instead of locking away existing family jewellery, you can start fresh gold accumulation directly on the app. Starting from just ₹100/day, your small daily savings gradually build up into full grams of pure 24K gold over time without straining your monthly finances.

Scheme details:

Savings method: Daily, weekly, or monthly SIPs or one-time deposits

Flexibility: 100% Flexibility (pause, restart, or withdraw anytime)

Tenure/Lockin period: None

Minimum investment: ₹100/day

Transaction type: Fresh investment in 24K pure digital gold on the Gullak app

Comparison: Gold Monetization scheme vs Gullak

Now that we have a deeper understanding of both the gold schemes, let us compare them under different parameters:

Table: Gold Monetization scheme vs Gullak

Pros & Cons of Gold monetization scheme

Pros:
1. If you have existing gold at your home, the Gold Monetisation scheme is an excellent way of reinvesting it.
2. Gold monetization scheme interest rate: If you want to earn extra interest on this idle gold, the 2.25% or 2.5% pa will aid with that.

Cons:
1. Lock-in period: The Gold Monetisation scheme comes with long lock-in periods or 15-17 years.
2. Indians have huge sentimental attachment with physical gold(like jewelleries). Under the scheme, you wouldn’t be able to get your jewellery back even after the scheme ends.

Concluding thoughts on Gold monetization scheme

The Gold monetization scheme is a beneficial opportunity for people who are trying to get more out of their existing gold. However, the scheme has major drawbacks like you not being able to get your jewellery back & long lock-in periods.

On the flip side, Gullak tackles the fundamental drawbacks that the Gold Monetization Scheme comes with. Instead of parting with sentimental family ornaments that get melted down, Gullak lets you start fresh gold accumulation from just ₹100/day. You get 100% flexibility with no lock-in periods, letting you pause or restart your contributions whenever you wish. When you are ready to withdraw, you can get it back in any form you prefer—order physical gold coins to your home, withdraw as cash, or redeem jewellery across 5,000+ partner stores including Tanishq, Malabar, and CaratLane.

Disclaimer: Investors should do their own due-diligence before choosing any financial asset