Updated By: LatestGKGS Desk
Sovereign Gold Bond Scheme : What is Gold Bond ?
Sovereign Gold Bond Scheme : Gold Bond,Launch date and Other features
The Sovereign Gold Bond Scheme was launched in November 2015 under the Ministry of Finance.It was introduced in the union budget 2015-16 by Prime
Minister by Narendra Modi.The scheme was launched to reduce the demand for physical gold and with an aim to invest a part of these physical gold bars and
Coins that are purchased every year into financial savings in the form of gold bonds.
A seventh tranche of the Gold Bond Scheme -in which the Reserve Bank of India issues bonds linked to the market price of gold on behalf of the government
made available for investment from 25th October 2021.
Gold Bond
It is an initiative taken by the Government of India to reduce the demand for physical bond as the increasing import of gold is affecting the growth and investment of the country.
Sovereign Gold Bond Scheme aims to invest the physical gold,kept in every Indian Household as Savings into financial savings through gold bonds.
The tenure of these gold bonds is 8 years and it can be canceled prematurely after 5 years on interest payment dates.
The Sovereign Gold Bond Scheme was launched under the Gold Monetisation Scheme in the year 2015.
The Gold Monetisation Scheme replaced the existing Gold Deposit Scheme (GDS) 1999.
The scheme provides the facility of earning 2.25% interest annually for short-term deposit of one year to three year to the gold depositers.
