By Anil Mathews (ScrapMonster Author)

March 21, 2016 05:58:29 AM

NEW DELHI (Scrap Monster): In response to government’s efforts to monetize thousands of tonnes of privately owned gold stocks, one of the richest Indian temples has decided to deposit nearly a quarter of its total gold stash with bank. This is considered to be the first substantial contribution to the scheme that has otherwise failed to gather investor interest.

The authorities of the 200-year-old Shree Siddhivinayak temple in Mumbai made an announcement to this effect yesterday. The deposit will be made by the end of March, temple authorities stated. Almost 44 kilograms of gold out of the total gold holding of around 160 kilogram will be deposited, they added. It must be noted that the Tirupati Temple-the richest Hindu temple in the world had expressed willingness to join the gold monetization scheme announced by the government.

According to sources, the decision by Shree Siddhivinayak temple in Mumbai to deposit gold for recycling would prompt many other temple trusts to follow suit. Rough estimates indicate that Indian households and temple vaults contain nearly 2,000 tonnes of gold. The much publicized gold monetization scheme has been able to attract deposits of only 3 tonnes since its launch four months ago. Reportedly, officials from the Finance Ministry have held discussions with Reserve Bank of India (RBI) officials on possible modifications that could be made to attract more gold deposits.

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.