SBI Mobilises 13,212 Kg Gold of Household and Institutional Through Gold Monetisation Scheme

New Delhi, Jun 22: State Bank of India (SBI) has mobilised 13,212 kg of household and institutional gold through the Gold Monetisation Scheme (GMS), according to the state-owned bank's annual report.

It added that the country's largest lender collected as much as 3,973 kg of gold during 2019-20 under the GMS, a programme launched by the government to utilise gold lying idle with individuals as well as trusts.

"During FY2020, (the) bank mobilised gold amounting to 3,973 kgs, bringing the cumulative mobilisation to 13,212 kgs," said SBI in the report. The government launched the GMS in November 2015 to mobilise idle gold held by households and institutions. The objective of the scheme was to facilitate use of idle gold for productive purposes, and also reduce the country's dependence on imports.

The bank further said that during 2019-20, it mobilised 647 kg (Rs 243.91 crore) through sovereign gold bonds (SGB), thus taking the total gold mobilised since inception of the scheme to 5,098 kg (Rs 1,561 crore).

The SGB scheme was introduced by the government during 2015-16 to promote digital gold instead of physical gold for investment purposes. As a primary player in the field of bullion banking, the bank has been making available metal gold loan to jewellers engaged in manufacturing of gold ornaments for the domestic and export purposes.

During 2019-20, the bank extended metal gold loan to jewellers to the extent of 22,255 kg and sold 2,522 kg of gold under the 'Sale of Gold' scheme to jewellers and traders.