Current Affairs

Sovereign Gold Bond Scheme 2019 - 20

Current context: The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds. 
Sovereign Gold Bond Scheme 2019 - 20
  • The SGB will be issued in six tranches from October 2019 to March 2020
The Bonds will be sold through:
  1. Scheduled Commercial banks (except Small Finance Banks and Payment Banks)
  2. Stock Holding Corporation of India Limited (SHCIL)
  3. Designated post offices
  4. Recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited
The main features of the SGB are:
  1. It will be issued by Reserve Bank India on behalf of the Government of India.
  2. The Bonds will be restricted for sale to resident individuals, Universities, Charitable Institutions, HUFs and Trusts
  3. The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised on the interest payment dates.
  4. The minimum permissible investment will be 1 gram of gold.
  5. The maximum limit of subscribed shall be 4 KG for individual and HUF each and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time.
  6. In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
  7. The investors will be compensated at a fixed rate of 2.50 % per annum payable semi-annually on the nominal value.
  8. Bonds can be used as collateral for loans.

Question: 

Choose the correct option in the context of Sovereign Gold Bonds: 
a. In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
b. Minimum permissible investment will be 1 gram of gold.
c. Bonds can be used as collateral for loans.
d. Only a and b
e. Only a and c
f. All a, b and c are correct
Sovereign Gold Bond Scheme 2019 - 20 Sovereign Gold Bond Scheme 2019 - 20 Reviewed by Shweta Kashyap on October 02, 2019 Rating: 5

No comments:

Join 8,000+ readers and get free notes in your email