Karur Vysya Bank (KVB) has launched its Capital Gains Account Scheme (CGAS), authorized by the Ministry of Finance. Available across the bank’s network excluding rural branches, the scheme helps individuals and Hindu Undivided Families (HUFs) securely park proceeds from asset sales, maintaining tax exemption eligibility while finalizing long-term investments. The scheme includes both savings and term deposit options.
Capital Gains Account Scheme Introduction
Karur Vysya Bank (KVB) has launched the Capital Gains Account Scheme (CGAS), effective January 9, 2026. This launch follows official authorization from the Ministry of Finance, Government of India. The service will be available immediately to customers across KVB’s branch network, excluding rural areas.
Scheme Features and Benefits
The Capital Gains Account is designed for individuals and Hindu Undivided Families (HUFs) who have sold assets, such as property, land, or securities. It offers a secure way to park proceeds, ensuring taxpayers remain eligible for tax exemptions while deciding on long-term investments. Depositing funds into this account allows continued eligibility for tax exemptions under the Income Tax Act, 1961.
Account Types and Accessibility
The Capital Gains Account Scheme is accessible throughout KVB’s non-rural branch network and supports fund transfers via UPI, NEFT, and RTGS. Customers can choose between two types of accounts:
* Type A (Savings Account): Designed for periodic withdrawals during phased reinvestment or construction timelines.* Type B (Term Deposit): Designed for parking capital gains for a fixed tenure, offering cumulative or non-cumulative interest payout.
Executive Commentary
According to Mr. B. Ramesh Babu, Managing Director & CEO of Karur Vysya Bank, this scheme underscores the bank’s commitment to offering comprehensive tax-planning solutions. The service aims to bridge a crucial gap in the investment lifecycle, helping customers to maintain tax compliance while making informed decisions.
Financial Performance Snapshot
As of September 30, 2025 (Q2 FY26), Karur Vysya Bank’s total business stood at Rs. 2,03,216 cr, including a deposit base of Rs. 1,10,492 cr and advances of Rs. 92,724 cr. The bank reported a net profit of Rs. 574 crores for Q2 FY26, and the net NPA was 0.19%.
Source: BSE
