Tirupati Balaji Temple to be biggest depositor of PM Modi's Gold Monetisation Scheme?

Zee Media Bureau

New Delhi: The Gold Monetisation Scheme (GMS) launched amid a lot of fanfare by Prime Minister Narendra Modi three weeks ago may find Tirupati Balaji Temple as its biggest depositor, as per media reports.

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.

The GMS has so far attracted only 400 grams out of a national hoard estimated at 20,000 tonnes, an industry official said recently.

TTD has deposited its gold in public sector banks viz, Stata Bank of India, State Bank of Hyderabad and Indian Bank at an interest rate of upto 1.5 percent per annum. The interest on gold deposit is fetched in kilograms of pure gold every year.

Should TDD make this deposit, the board will fetch over 80 kgs of gold every year, media reports further said.

Modi had urged Indians to put gold stashed in homes and temples in the bank, offering modest rates of interest that earlier schemes have lacked.

Entities participating in Gold monetization Scheme can earn up to 2.50 percent interest rate on their idle gold.

Interest rate on Medium and Long Term Government Deposit (MLTGD) are 2.25 percent and 2.20 percent, respectively, according to a notification issued by RBI.

The tenor of medium term would be between 5-7 years while long term would for 12-15 years tenure.