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SBI attracts deposits of 548 kg gold in two months

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Press Trust of India Ahmedabad
Last Updated : Jan 19 2013 | 11:47 PM IST

The Gold Deposit Scheme of SBI has attracted 548 kilograms of precious yellow metal deposits in a short span of two months in bank vaults.

The scheme which started on March 16 aims at bringing the gold into mainstream from the houses of people of the country.

"Our branches in four centres of Gujarat - Ahmedabad, Surat, Rajkot and Vadodara, have arracted 548 kgs of gold in the last two months," a senior SBI official said.

"Gold desposit scheme has done exceptionally well especially in Ahmedabad with 80 per cent of deposits coming to bank vaults are from the city out of the total gold deposits of 548 kilograms recieved so far from across the state," he added.

"Largely it is the individuals who are depositing gold in the bank vaults, and just two religious trusts have come forward so far to deposit their idle lying gold reserves with us," he added.

"In short term we expect more religious trusts to deposit their gold reserves in the bank," senior SBI official said.

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The gold deposit scheme was launched by SBI in mid of March this year as part of government initiatives to put country's idle lying gold reserves into circulation.

One branch each in four cities of Gujarat such as Ahmedabad, Vadodara, Surat and Rajkot were designated for gold deposits by the bank, official said adding that buyoed by the response SBI has extended the deposit facility across all other branches, SBI official added.

"All branches can now accept gold but they have to route the gold deposits through designated branches in the four cities," the official added.

As per government estimates nearly 15,000 tonnes of gold reserves are lying idle in the country and can be put to productive usage by the banks, a senior SBI official said.

According to SBI official, so far three nationalised banks including SBI have been designated by the government to accept gold as deposits, but only the country's lead bank has been able to launch this scheme.

Under the scheme customers avail tax exemptions under Income Tax, Wealth Tax and from Capital Gains, besides interest on the quantum of gold deposited in the bank vault, SBI official added.

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First Published: May 23 2009 | 3:12 PM IST

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