Gold Scheme Can Fetch Rs. 1 Lakh Crore: SBI

Mumbai: Describing the proposed gold deposit scheme as “game changer”, the SBI’s economic research department has said it will help attract at least Rs. 1 lakh crore in deposits on the precious metal, reports The Economic Times.

The proposed introduction of a gold deposit scheme is a big positive and conservative estimates show that the monetary value of gold deposits mobilized may be at least Rs 1 trillion, it said in note today.

It will be a “game changer” by incentivizing the banks to hold a part of the deposits as part of the mandatory cash reserve ratio or the statutory reserve ratio. This may free up resources for productive or lending purposes, it said. The conservative estimates show even at a 30 per cent strike rate, the monetary value of gold deposits mobilized may be as much as Rs 3 lakh crore, it said.

According to the note, the new scheme will help depositors of gold earn interest and jewellers to obtain loans on their metal accounts. In the Budget speech, Jaitley had introduced multiple measures to monetize gold, including the gold monetization scheme, a sovereign gold bond and developing an Indian gold coin which will have the Ashok Chakra.