gold bars
Tirupati temple wants gold, not cash on maturity. Picture: Gold barsWikipedia

The government's sovereign gold bond scheme has fared badly, if the final amount of about Rs 150 crore is any indication, say bankers, who also blamed the high issue price as the biggest dampener, PTI reported.

Public sector bankers to whom PTI spoke attributed the many market holidays and affinity of the public towards physical gold for the subdued demand for the much hyped sovereign gold bond scheme, which was the maiden offering by the government so far.

Although, the Reserve Bank has not formally disclosed the overall funds collected under the scheme, bankers pegged it at around Rs 150 crore.

The gold deposit scheme launched by the Narendra Modi government recently has so far seen a weak response, attracting just 400 grams against the estimated 20,000 tonnes of gold held by households and institutions in the country.