India's gold deposit scheme attracts only 400 grams so far

NEW DELHI, India -- A gold deposit scheme launched amid fanfare by Indian Prime Minister Narendra Modi two weeks ago has so far attracted only 400 grams, an industry official said on Thursday, out of a national hoard estimated at 20,000 tonnes.

Modi has urged Indians to put gold stashed in homes and temples in the bank, offering modest rates of interest that earlier schemes have lacked. His government has also launched "paper" gold in the form of gold-backed bonds.

A shortage of centers to assay the gold being put on deposit is a problem that the government has agreed to address, said Anil Sankhwal, the northern regional chairman of India's Gem and Jewellery Export Promotion Council.

"Only 400 grams have been deposited so far," Sankhwal told reporters after meeting financial ministry officials. "The government has agreed to review the scheme and open more centres for gold testing and depositing in banks." ...

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