The government will pay 2.5 per cent commission to banks for mobilising gold under the gold monetization scheme. The is part of revised guidelines of Gold Monetisation Scheme issued by the Finance Ministry today. The Scheme was launched by Prime Minister Narendra Modi on 5th of November last year. A press release issued by the Finance Ministry today said, the government will pay the participating banks fees for their services on gold purity testing charges, refining, storage and transportation on medium and long term gold deposits. <br/><br/>While nearly 900 kg of gold has been mobilised through the scheme so far, banks are understood to have been worried about the costs involved in the scheme. AIR correspondent reports that the government wanted to make it more popular with customers, given that it wants to mobilise 20,000 tonne of idle gold in the country which will also help reduce gold import bill . The correspondent says, under the modified rules, the customers can also avail the premature redemption under Medium and Long Term Deposits. <br/><br/>Medium Term Deposit will be allowed to be withdrawn after 3 years and Long Term Deposit after 5 years. To encourage the bulk depositors, including institutions to participate in the scheme, the government also decided the gold depositors can now give their gold directly to the refiner rather than through the Collection and Purity Testing Centres. It further said, the Bureau of Indian Standards BIS has modified the licensing condition for refiners from the existing three years to one year. It also said the quantity of gold collected under the scheme will be expressed up to three decimals of a gram. <br/><br/>The Finance Ministry again clarified that Tax exemptions under the GMS include exemption of interest earned on the gold deposited and exemption from capital gains made through trading or at redemption. It also reiterated that the gold jewellery to the extent of 500 gms per married lady, 250 gms per unmarried lady and 100 gms per male member of the family, need not be seized by tax authorities.