Tirumala temple to deposit 2.3 tons gold under GMS

The Punjab National Bank (PNB) has offered a highest quotation of rate of interest with 1.75 per cent per annum to Tirumala Tirupathi Devasthanam (TTD), which manages Tirumala - one of the richest temples in the World, under the short term deposit scheme for a period of three years under Gold Monetisation scheme. TTD will be investing around 2,300 kilos (2.3 tons) gold in the PNB offered scheme.According to TTD, PNB has come forward with a highest quotation of rate of interest with 1.75 per cent per annum under the short term deposit scheme for a period of three years under Gold Monetisation Scheme (GMS) for the pure gold bars of 0.995 fineness. TTD will be investing around 1300 kilos in the bank as it highest rate quoted in the Pure Gold Category.Another 1,000 kilos of gold, which is going to be matured with State Bank of India (SBI) in March this year, will also be invested in PNB at 1.75 per cent per year under short term deposit for a period of three years under gold monetisation scheme as the bank has quoted the highest percentage of interest rate.TTD will be investing around 1,400 kilos of mixed category of gold ornaments, gold articles etc. received in Hundi with Indian Overseas Bank.The bank will take up the responsibility of taking the mixed gold to Mint and getting it purified which includes the tasks of transportation, insurance, melting, conversion and assaying charges. For the refined gold, the bank has quoted the highest rate of 1.25 per cent per annum under short term deposit for a period of three years under GMS, said TTD.An official said that TTD prefers to redeem gold rather than cash at maturity, as it did under the Gold Deposit Scheme.According to the temple authorities, the 4.5 tonnes of gold already in the banks under earlier gold deposit scheme fetch an interest of 80kg of pure gold every year. The three gold deposits made earlier in 2010, 2011 and 2014 total 4.5 tonnes.Earlier, the investment Committee of TTD decided to keep the Gold corpus intact and said TTD will continue to keep the corpus in the form of Gold as it is and the interest earned on the Gold Deposit shall also be converted into Gold and added to the corpus.The committee in December has suggested to go for a high level meeting with financial officers at GOI level and with RBI to make some amendments in the Medium term and Long Term deposits under Gold Monetisation Scheme, for at least charitable and religious institutions, respecting the sentiments of devotees. The amendment to be requested will be in respect of returning the principle and interest in the form of gold in Medium term and Long Term gold deposits under GMS so as to keep the main corpus in tact.The short term deposits under the GMS is similar to the present gold deposit scheme which is being followed by TTD.TTD earlier said, as the existing rate of interest offered by banks for the short term deposits under GMS is very less, the committee in December has suggested to request the banks to offer the most competitive rate for short term gold deposits which is closer to the rate under Medium term and Long term deposits.

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Tirumala temple to deposit 2.3 tons gold under GMS