Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

GOLD DEPOSIT SCHEME
DISTRIBUTION
The public are able to participate in the scheme through 134 bank branches in 55 cities, split regionally as follows: south
(20), north (14), west (13) and east (8).
The State Bank of India (50 branches accept deposits) has the widest reach and the largest number of depositors, followed
by Indian Overseas Bank (37), Allahabad Bank (26) and Corporation Bank (21).
OBSERVATIONS
Only a small proportion of the 134 branches have taken significant deposits. The State Bank of India is the most active,
having announced that it accounts for more than 90% of all gold deposited.
Temples
Participating banks observe that temples are important customers. Several have deposited large amounts of old jewellery
received as donations.
General public
The public are reported as loath to deposit their K22 jewellery when, after the preliminary assay, it is often recorded as
having a lower than expected caratage. Their jewellery has a higher value when sold back or exchanged at the retailer from
which they bought it. In addition, the preliminary assay often damages their jewellery.
In the previous Gold Bond Scheme, available over a short period in 1993, there was an amnesty whereby depositors were
not liable for having to explain the original source of funds to purchase the gold being deposited. An amnesty does not
apply to the current scheme.
HISTORICAL GOVERNMENT GOLD BOND SCHEMES 1962 - 1993
The Gold Deposit Scheme should be viewed in the context of 4 previous gold bond schemes, issued in 1962, 1965 (2) and
1993.
15 year 6.5% Gold Bonds 1977. Issued 12 November 1962. Redeemable at par in rupees on 12 November 1977.
Annual interest increased to 7.5% on 1 April 1965. 16.3 tonnes subscribed.
15 year 7% Gold Bonds 1980. Issued 2 March - 31 May 1965. Value of gold calculated at Rs 53.58 per 10 g at 995
purity. Redeemable at par in rupees from 2 March 1980. 6.1 tonnes subscribed.
National Defence Gold Bonds 1980. Issued 27 October 1965 - 31 January 1966. Interest fixed at Rs 2.00 per annum
per 10 g at 995 purity. Redeemable in gold bars at 995 purity from 27 October 1980. 13.7 tonnes subscribed.
5 year Gold Bond 1998. Issued 15 March - 14 June 1993. Payment in gold bars at 995 purity plus a lump sum interest
payment of Rs 40 per gramme at 995 purity. 41 tonnes subscribed.
Photograph: Allahabad Bank
A minimum deposit is normally 200 g of old gold jewellery, coins or bars.
AN INTRODUCTION TO THE INDIAN GOLD MARKET 69