Indian Temple Trust to Deposit Gold Hoards in RBI Gold Scheme

SEATTLE (Scrap Monster): The administrative body in control of temples in the Southern Indian state of Kerala has decided to deposit the huge gold stocks held by it into the Reserve Bank of India’s gold monetization scheme. The decision is pending for approval by High Court which oversees the temple board.

As per sources, the Travancore Devaswom Board (TDB) holds gold stock of around 1,000 kilograms. The silver holdings, by weight, could be almost double of that. The TDB is currently in the process of inventorying the precious metals stock, comprising of items that it has received as donations from devotees, in the form of ornaments, coins and other valuable pieces of material. Meantime, items with ritualistic significance or those with antique value will not be deposited.

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The decision to deposit gold with the scheme comes on concerns regarding safety and security of gold holdings, currently held at strong rooms. The monetary benefit on gold deposit has been another driving factor for arriving at the decision. The 2.5% annual interest rate on gold bonds would fetch approximately INR 12 crores as interest per annum for every 1,000 kilograms of deposit. It must be noted that the board has been facing severe liquidity crunch.

The trusts of some of the largest temples in the country had earlier joined the scheme.