Sovereign Gold Bond Scheme (SGB) was launched by Government of India in 2015. Every year country imports tons of gold to offset the domestic demand which results current account deficit. This helps maintaining the country’s Current Account Deficit within sustainable limits. Let’s elaborately discuss What is Sovereign Gold Bond Scheme.
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
The Bond is issued by Reserve Bank of India on behalf of Government of India.
Bonds are sold through:
The bond is tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.
We hope you liked this article on What is Sovereign Gold Bond Scheme. Here are some useful government scheme for you to read next:
Download this article as PDF
Click to go to RBI Grade B Preparation Page | Click to read more government schemes
Tags: sovereign gold bond, gold bond, sovereign gold bond scheme, gold bond scheme, gold bonds india, sovereign gold bond scheme 2017, sovereign gold scheme, what is sovereign gold bond scheme
May – 2020 Edition
April – 2020 Edition
March – 2020 Edition
February – 2020 Edition
January – 2020 Edition
December – 2019 Edition
Punjab Civil Services 2020