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Sovereign Gold Bond Scheme 2022-23

Sovereign Gold Bond Scheme 2022-23

Sovereign Gold Bond Scheme: SGBs scheme is an important policy of the union government to reduce the demand for physical gold as an investment tool by providing Sovereign Gold Bonds as an investment tool. Sovereign Gold Bond Scheme will come under Governance, Administration and ChallengesGovernment policies and interventions for development in various sectors and issues arising out of their design and implementation of UPSC Mains GS Paper 2 Syllabus.

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Sovereign Gold Bond Scheme in News

  • The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds in tranches for 2022-23.
  • Following entities are authorized to sell Sovereign Gold Bonds (SGBs)-
    • Scheduled Commercial banks (except Small Finance Banks and Payment Banks),
    • Stock Holding Corporation of India Limited (SHCIL),
    • Clearing Corporation of India Limited (CCIL),
    • Designated post offices, and
    • Recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

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Sovereign Gold Bond Scheme

  • About: Sovereign Gold Bond (SGB) Scheme was launched by Ministry of Finance in 2015, under Gold Monetisation Scheme.
    • SGBs act as substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
  • Issuing Authority: Sovereign Gold Bonds are to be issued by Reserve Bank of India on behalf of the Government of India.
  • Objective of SGB scheme:
    • SGBs are aimed at reducing our over dependence on gold imports.
    • SGBs are aimed at changing the habits of Indians from saving in physical form of gold to a paper form.
  • Eligibility: Sovereign Gold Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.
  • Denomination: The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of one gram.
  • SGBs Tenor: The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.
  • Minimum and Maximum Size of Issue:
    • Minimum permissible investment in SGBs will be One gram of gold.
    • The maximum limit of SGBs subscription shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time.
    • In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
  • Interest Rate: The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
  • Tradability: SGBs shall be eligible for trading.

Euro Green Bond

 

Sovereign Gold Bond Scheme MCQs                                                                                 

 

  1. 1: What is a Sovereign Gold Bond Calculator?

Ans. Sovereign Gold Bond Calculator is an online tool to help an investor to find out the returns earned from investing in SGB Schemes.

 

  1. 2: Who is the issuing authority of Sovereign Gold Bonds (SGBs)?

Ans. SGBs are to be issued by Reserve Bank of India on behalf of the Government of India.

 

Q.3: Who are eligible for applying Sovereign Gold Bonds (SGBs)?

Ans. Sovereign Gold Bonds (SGBs) can be subscribed by resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

 

Q.4: When was the Sovereign Gold Bond Scheme Launched?

Ans. Sovereign Gold Bond Scheme was launched in 2015 by the Ministry of Finance.

 

Sovereign Green Bonds

Sovereign Gold Bond Scheme

Sovereign Gold Bond Scheme

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