Sovereign Gold Bond SchemeUPSC

Sovereign Gold Bond Scheme

The Sovereign Gold Bond Scheme was presented in the Union Budget 2015-16 by the Union Cabinet, which was led by PM Narendra Modi. It was dispatched to diminish the interest for actual gold and with an intend to contribute a piece of these actual gold bars and coins that are bought each year into monetary investment funds as gold securities.

Sovereign Gold Bond Scheme

Most recent on Sovereign Gold Bond Scheme –

A seventh tranche of the gold security plot – in which the Reserve Bank of India (RBI) issues securities connected to the market cost of gold in the interest of the public authority made accessible for speculation from 25th October 2021.

A portion of the features of the Sovereign Gold Bond Scheme have been examined in the table given beneath:

Sovereign Gold Bond Scheme

Year of launching November 2015

Dispatched by PM Narendra Modi

Government Ministry Ministry of Finance

Residency of Sovereign

Gold Bond Scheme 8years

What is Gold Bond?

Gold Bond is a drive taken by the Government of India as per the Reserve Bank of India to diminish the interest for actual gold as the expanding import of gold is influencing the development and venture of the country. A lot of actual gold as gold bars and coins are kept in each Indian family as investment funds. Sovereign Gold Bond Scheme hence targets putting this actual gold into monetary reserve funds through gold securities. The residency of these gold bonds is 8 years which can be dropped rashly following 5 years on interest installment dates.

The Sovereign Gold Bond Scheme was dispatched under the Gold Monetization Scheme in the year 2015. The Gold Monetization Scheme was acquainted with supplant the current Gold Deposit Scheme (GDS), 1999. The plan works with the gold contributors to procure interest of 2.25% every year for a momentary store of one year to three years.

Who can apply for Sovereign Gold Bond Scheme?

The Sovereign Gold Bond Scheme can be profited by the people falling under the accompanying classifications:
According to the Foreign Exchange Management Act, 1999, an individual should be an Indian occupant to meet the qualification rules under the Gold Bond Scheme.
Any individual/affiliation/trusts/HUFs having an Indian residency is qualified to put resources into the Sovereign Gold Bond plot. They can likewise together put resources into these gold bonds as the qualification standards of the plan.
The advantages of this plan can likewise be benefited by the minors given this bond is bought by the guardians for their sake.

Government Schemes are a significant piece of the UPSC schedule. Applicants should be intensive with the goals and the exercises of these significant plans for the IAS test.

Advantages of Sovereign Gold Bond Scheme

The Sovereign Gold Bond Scheme gives adaptable gold category as far as buying gold. These gold bonds are accessible in numerous weight sections beginning from 1 gram.
The gold bonds can be profited either in paper or in demat structure according to the accommodation of a person.
The plan likewise gives adaptable venture where one can pick the sum he/she needs to contribute.
The interest accommodated the gold bond is 2.50% per annum which can be paid semi-every year on the ostensible worth.
The tenor of the Bond will be for a time of 8 years with a leave choice in the fifth, sixth and seventh year, to be practiced on the interest installment dates.
The gold bonds contributed by the Investors can be skilled or moved to other people who are qualified under the plan. They can likewise exchange these bonds on stock trades subject to notices of the Reserve Bank of India.
These Gold bonds can be bought through numerous installment modes like checks, money, DDs or electronic exchange.

Up-and-comers ought to follow the most recent advancements in Current Affairs identified with other government plans for their UPSC 2022 planning.