The Gold Monetisation Scheme enables individuals (households) and institutions unlock the value in their gold holdings by earning interest, while protecting the basic investment i.e. investment made in gold. The deposit is treated as a term deposit in the form of gold, the principal can be redeemed in INR (at the rate of gold prevailing on the date of redemption for Principal) and interest earned on which will be paid annually (at the rate of gold prevailing on the date of creation of gold deposit).