What is New Gold Monetisation Scheme?

General
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I want to know about the New Gold Monetisation Scheme ?

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All you need to know about gold monetization scheme

It is a scheme that facilitates the depositors of gold to earn interest on their metal accounts. Once the gold is deposited in metal account, it will start earning interest on the same.

Please read below link(article) to know more about Gold Monetisation Scheme.

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Can we deposit gold jewellery as part of this scheme? Will we get the same jewellery at the end or will they simply melt and use our jewellery and give us only money

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your jewelry will be melted and used. You will not get your original jewelry back.

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As per the RBI website -

For Short Term Bank Deposit (STBD) -

vi. Redemption of principal and interest at maturity will, at the option of the depositor be either in Indian Rupee equivalent of the deposited gold and accrued interest based on the price of gold prevailing at the time of redemption, or in gold. The option in this regard shall be made in writing by the depositor at the time of making the deposit and shall be irrevocable:

Provided that any premature redemption shall be in Indian Rupee equivalent or gold at the discretion of the designated bank.

For Medium and Long Term Government Deposit (MLTGD) -

v. In the case of MLTGD, the redemption of principal at maturity shall, at the option of the depositor, be either in Indian Rupee equivalent of the value of deposited gold at the time of redemption, or in gold. However, any pre-mature redemption of MLTGD shall be only in INR.15 Where the redemption of the deposit is in gold, an administrative charge at a rate of 0.2% of the notional redemption amount in terms of INR shall be collected from the depositor. However, the interest accrued on MLTGD shall be calculated with reference to the value of gold in terms of Indian Rupees at the time of deposit and will be paid only in cash.16

But as @Akash_Shah pointed out, the original jewellery will be melted. Hence, at the time of redemption even if a person opts for payment in Gold, then that will not be their original jewellery but likely in the form gold bars/coins