Government to mobilize Rs 31290 Crore through sovereign gold bonds: FM

From the date of the launch of Sovereign Gold Bond (SGB) in 2015, the government has collected Rs 31,290 crore. This was informed in the parliament on Monday by Finance Minister Nirmala Sitharaman. The main objective of the gold bonds was to create an alternative financial asset and also an investment substitute for purchasing or holding physical gold. 

In this respect, Nirmala Sitharaman said, ‘It was the response of the public in respect of the SGB scheme which resulted in a collection of Rs, 31,290 crores in 2015-16”. These bonds have been issued on payments in Indian Rupees and dominated on grams. Issued on the behalf of the government of India by the Reserve bank of India and have a sovereign guarantee. Currently the limit for the investment of 4 Kg per fiscal year, for individuals and 20 kg per fiscal year for Hindu Undivided Families, trusts, and similar entities. The ceiling for this will be counted based on the financial year and it will include SGB purchases during the trading in the secondary market, as the finance minister stated. With that, the ceiling on investment will not include the holding as collateral by the banks and financial institutions. 

Source: economictimes.com