Kochi: Private banks headquartered in Kerala are preparing to introduce an investment scheme that will allow customers to claim exemption from capital gains tax. As many as 19 private sector banks across the country—including Kerala’s Federal Bank, Dhanlaxmi Bank, South Indian Bank and CSB Bank—have now received fresh approval from the Union Finance Ministry to launch this facility.

Under the Capital Gains Accounts Scheme (CGAS), customers will be able to make fixed deposits or savings bank deposits for up to three years. The scheme will be available at all branches except rural branches.

Kerala-based banks are making arrangements to roll out the scheme within the next two to three months. “We are studying the details of the scheme and aim to introduce it at the earliest,” said managing

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