Gold Deposit generally refers to a scheme where individuals deposit gold with a financial institution and earn returns or receive value in another form. In the Indian context (especially for Nidhi / NBFC / Banking-related discussions), it can mean a few different things:
1️⃣ Gold Deposit Scheme (Concept)
A Gold Deposit Scheme (GDS) allows a person to:
- Deposit physical gold (jewellery, coins, bars)
- Earn interest or monetary value
- Get maturity value in gold or cash, depending on the scheme
2️⃣ Types of Gold Deposit Options in India
A. Government Gold Monetisation Scheme (GMS)
- Offered through banks (as per RBI & Govt. of India)
- Minimum deposit: usually 10 grams
- Tenure: Short (1–3 yrs), Medium (5–7 yrs), Long (12–15 yrs)
- Interest: around 1%–2.5% p.a.
- Gold is melted and converted to standard gold
- Low risk, government-backed
B. Gold Savings / Digital Gold (Private Platforms)
- Invest money equivalent to gold value
- Gold stored digitally
- No physical deposit by customer
- Returns depend on gold price
C. Gold Loan–Linked Deposit (Nidhi / NBFC Style)
- Member deposits gold as security
- Institution gives loan or savings benefit
- Gold returned after repayment/maturity
Nidhi Companies are NOT permitted to run Gold Deposit Schemes like banks.
They can only:
They can only:
- Accept money deposits from members
- Provide gold loans, not gold investment schemes
3️⃣ Can a Nidhi Company Offer Gold Deposit?
No (Directly not allowed)
As per Nidhi Rules, 2014:
- Nidhi cannot accept gold as a deposit
- Gold can be accepted only as collateral for loans
- Deposit must be in cash/bank form only
✅ However, a Nidhi can:
- Offer Fixed Deposit / Recurring Deposit
- Provide Gold Loan against pledged gold
- Educate members about government gold schemes (without collecting gold)
4️⃣ Example (Compliant Nidhi Product Alternative)
- Member invests in FD
- Gets Gold Loan facility when need