Context:
The latest Sovereign Gold Bond (SGB) tranche has opened for subscription.
About SGB Scheme:
- Launched in 2015.
- Objective – To reduce the demand for physical gold and shift a part of domestic savings, used for gold purchase, into financial savings.
- SGB are government securities, issued under Government Securities Act, 2006.
- Issued by – Reserve Bank of India on behalf of GoI.
- Restricted for sale to resident individuals, Hindu Undivided Family (HUFs), Trusts, Universities and Charitable Institutions.
- Tenor – Period of 8 years with an option of premature redemption after 5th year.
- Minimum investment – 1 gram of gold.
- Maximum limit – 4 Kg for individual, 4 Kg for HUF and 20 Kg for trusts per fiscal year
- Issue price – Fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited.
Source: Economic Times
Previous Year Question
What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
1. To bring the idle gold lying with Indian households into the economy.
2. To promote FDI in the gold and jewellery sector.
3. To reduce India’s dependence on gold imports.
Select the correct answer using the code given below:
[UPSC Civil Services Exam – 2016 Prelims]
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (c)
