Gold deposit scheme News

The Tirumala Tirupati Deveasthanams (TTD) board has reportedly said that it will consider deployment of temple gold in the GMS once the investment panel gives its nod.

A gold deposit scheme launched amid fanfare by Indian Prime Minister Narendra Modi two weeks ago has so far attracted only 400 grams, an industry official said on Thursday, out of a national hoard estimated at 20,000 tonnes.

As per the guidelines, banks will be free to set interest rate on such deposit, and principal and interest of the deposit will be denominated in gold.

Highlights of the two gold schemes approved at a Cabinet meeting chaired by Prime Minister Narendra Modi.

Government is looking at raising Rs 15,000 crore in the current fiscal through the gold bond scheme, for which a cabinet note is likely to be moved for consideration later in the month.

Centre's gold sovereign bond scheme is expected to address pure investment demand for the yellow metal, says India Ratings and Research (Ind-Ra).

At present, banks are offering an interest of up to 1 percent on gold deposits and the same needs to be "much higher" for the new scheme to succeed.

The draft gold monetisation scheme also provides for incentives to the banks, while individuals and institutions can deposit as low as 30 gms of gold, while the interest earned on it would be exempt from income tax as well as capital gains tax.

The Reserve Bank holds 557.75 tonne gold while over 20,000 tonne of the metal is held by the public in the country, Parliament was informed on Tuesday.

The Reserve Bank holds 557.75 tonne gold while over 20,000 tonne of the metal is held by the public in the country, Parliament was informed on Tuesday.

Describing the proposed gold deposit scheme as "game changer", the SBI's economic research department has said it will help attract at least Rs 1 trillion in deposits on the precious metal.

Worried over surge in gold imports, the government is contemplating to put curbs on inward shipments of the precious metal by big private agencies.

India`s gold imports surged to about 150 tonnes in October, Bloomberg said in a tweet, a volume that could pressure the government to tighten curbs on shipments of the metal.

The country's gold imports could come down by 250 tonnes a year if the government re-launches a gold deposit scheme and mobilises at least one per cent of estimated 25,000 tonnes of idle gold stock lying with Indians, according to the gold and silver refiner MMTC Pamp.