TTD to deposit 1 tonne gold annually under monetisation scheme

The Tirumala Tirupati Devasthanams (TTD), which manages affairs of the Lord Venkateshwara temple, has decided to deposit 800 kg to 1 tonne gold every year with the banks under the Centre’s Gold Monetisation Scheme (GMS).

The TTD, which has already deposited 7 tonnes of gold with the banks under its own scheme prior to GMS, has for the first time deposited 1,311 kg of gold in Punjab National Bank recently, based on November’s GMS norms.

Speaking to reporters here on Saturday, TTD Executive Officer Dr D Sambasiva Rao said that the government has agreed to change norms under the medium and long-term deposits, following which TTD agreed to go for the GMS as a regular practice hereafter.

“Under the Government of India’s new gold monetisation scheme, there are three components. Under short-term we get back gold for the principle deposited. We have requested them to apply similar condition to other terms so that entire gold of 7.5 tonnes could be put into anyone of these three things, whenever the deposits mature (sic),” said Rao.

The TTD gets around 2.5 % interest but it has been requesting the government to allow banks to return the principle in gold and not in cash. “We requested them to return the principle in gold. They agreed. Similarly the banks calculate rate of interest as per the value of the gold at the time of deposit not at the time of return. So we have asked them to change that also. They have agreed to it so mostly we will go for the gold monetisation scheme,” he added.

Regarding cash deposits, Rao said that TTD time and again takes advice from a high-level investment committee.