The Gold Monetization Scheme allows Indians to deposit physical gold in bank accounts, where it earns interest. The scheme aims to mobilize gold holdings and reduce gold imports, while providing gold loans to jewelers. Depositors receive certificates stating the amount and purity of gold deposited, which can be used for short, medium, or long-term bank deposits earning 2.5% annual interest. The deposited gold is lent by banks to jewelers at a higher interest rate than paid to depositors.