By Anil Mathews (ScrapMonster Author)

December 10, 2015 01:09:05 AM

MUMBAI (Scrap Monster): One of the most popular Indian temples has announced that it may soon join the ‘Gold Monetization Scheme’. Around 200 years old Shree Siddhivinayak temple in Mumbai plans to melt a part of the gold jewellery stored in vaults to give boost to the scheme announced recently by the government. This is considered to be the first substantial contribution to the scheme that has otherwise failed to gather investor interest.

According to temple authorities, around one-fourth of the total gold jewellery in its vaults will be utilized towards depositing in the scheme. Nearly 40 kilograms of gold jewellery with lower purity will be melted to make bars. These gold bars will be deposited under gold monetization scheme. However, a final decision is not made yet, they added.

Earlier, the Indian government had launched the scheme with the aim of unlocking over 20,000 tonnes of idle gold in Indian households and temple vaults. The ultimate aim of the project was to trim the rising gold imports into the country by tapping the tonnes of idle gold. However, the scheme had failed to evoke interest among Indian households. As per government data, the scheme had been successful in attracting only less than 1 kilogram of gold during the first month of its launch. The decision by Shree Siddhivinayak temple is expected to give a big boost to the scheme. It may also encourage other temple trusts in the country with rich gold holdings to follow suit.

The temple had deposited nearly 10 kilograms of gold under the old scheme which had offered 1% interest rate. But the new scheme offers a higher interest rate of 2.5%, said Sanjiv Patil, executive officer of the temple trust.

The gold monetization scheme allows deposits in the form of gold bars, coins, and jewelry without embedded stones. The minimum deposit quantity would be 30 grams of 995 fineness raw gold, whereas there will be no maximum limit. The gold deposit accounts denominated in gold are maintained by the Reserve Bank of India.