Sovereign Gold Bond

Question 1

Who has launched the Sovereign Gold Bond ?

Answer 1

RBI on behalf of Govt of India

Question 2

When was this first introduced in India ?

Answer 2

In 2015

Question 3

Why has this been launched ?

Answer 3

To reduce India’s over dependence on gold imports

Question 4

What are the facts related to eligibility ?

Answer 4

Bonds are restricted to sale to resident Indian entities , including individuals , HUF’s , Trusts , universities and charitable institutions

Question 5

What are the facts related to denomination and tenor ?

Answer 5

Denominated in multiples of grams of gold with a basic unit of 1g. tenure period of 8yrs with exit option from 5th year

Question 6

What are the facts related to min and max limit ?

Answer 6

Min –> 1g

Max —> 4kg for individual , 4kg for HUF and 20kg for trusts

Question 7

What are the facts related to joint holder ?

Answer 7

In case of joint holding investment limit of 4kg will be applied to 1st applicant only

Question 8

What are the facts related to collateral ?

Answer 8

Bonds can be used as collateral for loans . Loan to value ratio is set to be equal to ordinary gold loan mandated by RBI