The Reserve Bank of India (RBI)’s fifth tranche of sovereign gold bonds (SGBs) for this monetary 12 months, opens today, i.e. August 9, 2021, until August 13 with a settlement date of August 17, 2021.
The problem value of the bond throughout the subscription interval has been fastened at Rs 4,790 per gram. Each bond tracks the value of 1 gram of gold. There is a reduction of Rs 50 accessible on the provide and in case you apply by way of a digital fee mode. A reduction of Rs 50 can also be on provide in case you apply utilizing a digital fee mode.
Those traders will additional get 2.5% curiosity which could be paid on a half yearly foundation. These bonds are even listed on the inventory exchanges.
The authorities has collected Rs 31,290 crore from the Sovereign Gold Bond (SGB) Scheme since its launch in 2015, Finance Minister Nirmala Sitharaman knowledgeable Parliament on Monday.
With the primary goal to develop an alternate monetary asset and in its place to buying/holding of bodily gold, the SGB Scheme was notified by the Government of India on November 5, 2015, Sitharaman mentioned in a reply in Lok Sabha.
“The response of public on the SGB scheme has resulted in the collection of Rs 31,290 crore since 2015-16,” she mentioned.
Talking about options of the scheme, the Finance Minister mentioned these bonds are issued on fee of Indian rupees and are denominated in grams of gold.
Bonds are issued on behalf of the Government of India by RBI, and have a sovereign assure.
“The bonds are restricted for sale to resident Indian entities. The investment limits are presently 4 kgs per fiscal year, for individuals and Hindu Undivided Family (HUF) and 20 kgs per fiscal year for trusts and similar entities. The ceiling will be counted on financial year basis and will include the SGBs purchased during the trading in the secondary market,” she mentioned.
The ceiling on funding is not going to embrace the holdings as collateral by banks and monetary establishments, she added.
She additional mentioned “interest payable on these bonds are half-yearly and are at the rate of 2.5 per cent per annum. Interest on the bonds is taxable as per the provisions of the Income Tax Act. The capital gains tax arising on redemption of SGB to an individual has been exempted.”
Replying to one other query, Sitharaman mentioned the entire debt burden of the federal government throughout 2020-21 stood at Rs 1,19,53,758 crore (provisional) or 60.5 per cent of GDP (Rs 1,97,45,670 crore).
“Towards overcoming the debt burden, government’s focus is to reduce the fiscal deficit from 6.8 per cent of GDP in BE 2021-22 to below 4.5 per cent of GDP by 2025-26. Debt consolidation through increasing buoyancy of tax revenues through improved compliance, increased receipts from monetisation of assets including public sector enterprises and land are the additional steps involved,” she mentioned.
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