Apparently faced with a severe liquidity crisis due to a sharp drop in devotees’ cash offerings to the Lord Venkateshwara temple in Tirumala, the Tirumala Tirupati Devasthanams decided on Friday to convert their cash deposits worth more than Rs 12,000 crore into various banks in monthly mode.
A decision was made in this regard at the TTD board of directors meeting held in Tirumala in the morning. Until now, the TTD had been making cash deposits in banks quarterly, semi-annually and annually and earning interest only at the end of the maturity of the deposits.
“Now we have decided to convert all these deposits into a monthly modality with immediate effect. Since deposits are renewed every month, we can earn monthly interest that can be used to pay salaries, cover general expenses, and perform regular rituals for the Lord, ”TTD Chairman of the Board of Directors, YV Subba Reddy, told reporters. , after the board meeting.
According to last year’s estimates, TTD has cash deposits with banks in the amount of more than 12 billion rupees. In the 2020-21 annual budget for the TTD, adopted in February this year, the board projected an income of Rs 706 crore in the form of interest on deposits for the entire year.
Interest on deposits is the second highest source of income after Hundi collections (cash chest adjacent to temple where devotees make offerings), which are projected at around Rs 1,313 crore in TTD’s annual budget, which has a total outlay of Rs 3,309 crore.
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The decision to switch to the monthly mode of deposits was apparently made in light of a severe cash crisis due to the sharp drop in income from pilgrim offerings due to the Covid-19 pandemic and the prolonged lockdown that forced the temple. to remain closed for 80 days. Even after the blockade was lifted, the number of pilgrims dropped drastically.
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TTD’s board of trustees also decided that the Lord’s gold deposits should be converted to long-term deposits from the current short term, in order to earn more interest. Currently, gold deposits are generating income of 2.5 percent. Longer durations, up to 12 years, will earn a higher interest rate.
TTD deposits surplus gold, donated by devotees but never used for the Lord’s decoration, in banks nationalized according to a state government order in 2000. When the RBI introduced the gold monetization scheme in 2015, the TTD deposited 5,387 kgs of gold in State Bank of India, 1,938 kgs in Indian Overseas Bank and 1,381 kgs in GNP. Gold in GNP was withdrawn last year at expiration and moved to the SBI.
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The board also decided that the Brahmotsavams in September would be held at Ekantam (no devotees allowed). Brahmotsavams are one of the most important celebrations in Tirumala.
This is the first time that Brahmotsavams will be held in a simple way for a formality due to the Covid-19 pandemic. The president said there would be another Brahmotsavams in October. If the situation improves, devotees can be allowed.
TTD board member Sudha Narayana Murthy offered Rs 1 crore as a donation to TTD for adopting the sophisticated technology for composting garbage on Tirumala hill. A consultant would be hired to find workable solutions, Reddy said.
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