The population of the squirrel in India declined by 30 per cent over the last two decades. Buy and Sale: Investors have to pay the issue price in cash and the bonds will be redeemed (bought back by the issuer) in cash on maturity. These financial assets include bonds, stocks, real estate and precious metals. The three companies are Zydus Cadila (vaccine candidate – ZyCoV-D), Bharat Biotech (vaccine candidate – Covaxin) and Serum Institute of India (SII) (vaccine candidate – Covishield). When a government issues such a bond it is called a sovereign bond. In the Budget speech, Finance Minister announced that the Indian “government would start raising a part of its gross borrowing … Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds-2018-19. Sovereign Bonds: During the recent Budget, the Indian finance minister announced plan of the government of India to borrow in foreign currency to finance the fiscal deficit. What exactly are sovereign bonds? Thursday, July 25, 2019. About Sovereign Gold Bonds: They are government securities denominated in grams of gold. The reasons for craze for gold are obvious. Articles for Civil Service Aspirants in India. Since the bonds are denominated in multiple of grams of gold, the minimum value one can purchase on is bond worth 1 gram of gold. Sovereign debt is the money a government borrows from its own citizens or from investors around the world. Minimum permissible investment will be 1 gram of gold. Under the scheme citizens can hold paper gold. Moody's issued publicly available credit ratings for bonds, in 1909, and other agencies followed suit in the decades after. Why in News? Just like other bonds, these also promise to pay the buyer a certain amount of interest for a stipulated number of years and repay the face value on maturity. The interest income from bonds is taxable under Income Tax Act. The Malayan Giant Squirrel, found in the forests of India’s Northeast, may soon disappear, as per a study by the Zoological Survey of India (ZSI). The sovereign gold bond scheme was launched in November 2015 to reduce the demand for physical gold and shift a part of the domestic savings, used for the purchase of gold, into financial … It was launched to reduce the demand for physical gold and with an aim to invest a part of these physicals gold bars and coins that are purchased every year into financial savings in the form of gold bonds. Latest current affairs articles for Civil Services Examination. The fourth tranche of sovereign gold bonds (SGBs) in the current financial year, The fourth tranche of sovereign gold bonds (SGBs) in the current financial year, issued by the Reserve Bank of India on behalf of the government, have been, Sovereign Gold Bond (SGB) was launched as way for the government to seek. From UPSC perspective, the following things are important: Prelims level: Blue Bonds. The quarterly Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI) showed there was a steady dip in urban unemployment rate in October-December 2019, before nationwide lockdowns began. A bond is like an IOU. 2.75% compound interest half yearly. The Election Commission (EC) has now approached the government to permit Non-Resident Indians (NRIs) to cast their votes through postal ballots. What exactly are sovereign bonds? These gold bonds are available in multiple weight denominations starting from 1 gram. They can also jointly invest in these gold bonds as the eligibility criteria of the scheme. Launched to reduce India's dependence on imported gold and lower current account deficit. The UN Commission on Narcotic Drugs (CND) recently voted to remove cannabis and cannabis resin from the list of most dangerous substances – the Schedule IV of the Single Convention on Narcotic Drugs, 1961. Recently, Reserve Bank of India (RBI) has decided to issue Sovereign Gold Bonds (SGBs) in six instalments, from April 2020 to September 2020. The Union Cabinet has approved the Phase II and Phase III of Dam Rehabilitation and Improvement Project (DRIP) to improve the safety and operational performance of 736 dams in 19 states. National governments have been issuing bonds for centuries, so the risks are well-known. Raising resources through variety of taxes has been a tool used by governments all over the world for centuries. Required fields are marked *, Aspirants would find this topic very helpful while preparing for the. There has been a lot of noise around foreign sovereign bonds ever since the Finance Minister Nirmala Sitharaman proposed to raise part of the … According to the World Gold Council, 25,000 tonnes of gold worth half of GDP is sitting idle in homes and temples of India. No capital gains if redeemed at maturity. India’s two adversarial neighbours — China and Pakistan. December 3 is marked by the United Nations as the International Day for Persons with Disabilities (PwD), to promote a more inclusive and accessible world for the differently-abled and to raise awareness for their rights. The Sovereign Gold Bond Scheme can be availed by the individuals falling under the following categories: Government schemes are an important part of the UPSC syllabus. Aspirants would find this topic very helpful while preparing for the IAS Exam. Apart from a fixed return, they offer the maximum safety, and are also actively traded in the secondary market. A bond is like an IOU. They are substitutes for holding physical gold. 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Gold having a finite value in terms of its weight or amount cannot be debased during years as against to currency whose value is determined by the market forces. However, the major advantage is that the bonds. The Sovereign Gold Bond Scheme was introduced in the Union Budget 2015-16 by the Union Cabinet which was chaired by PM Narendra Modi. The Sovereign Gold Bonds will be issued every month from October 2018 to February 2019. They can be denominated in both foreign and domestic currency. The gold bonds invested by the Investors can be gifted or transferred to others who are eligible under the scheme. Issues The current controversy relates to India’s sovereign bonds that will be floated in foreign countries and will be denominated in foreign currencies. Governments borrow money by selling bonds to investors. Sovereign Gold Bond Scheme [UPSC Notes GS-II] The Sovereign Gold Bond Scheme was introduced in the Union Budget 2015-16 by the Union Cabinet which was chaired by PM Narendra Modi. As per the Foreign Exchange Management Act, 1999, an individual must be an Indian resident to meet the eligibility criteria under the Gold Bond Scheme. How does the Sovereign gold bond work? It was launched to reduce the demand for physical gold and with an aim to invest a part of these physicals gold bars and coins that are purchased every year into financial savings in the form of gold bonds. Sovereign debt is one of the oldest investment asset classes in the world. The interest provided for the gold bond is 2.50% per annum which can be paid semi-annually on the nominal value. Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date. The sovereign gold bond scheme was launched in November 2015. About Sovereign Gold Bonds Scheme In 2015, Government introduced the Sovereign Gold Bonds as substitutes of expensive gold imports that impact the current account deficit (CAD). The scheme also provides flexible investment where one can choose the amount he/she wants to invest. The Prime Minister chaired the 33rd interaction involving Central and State governments through PRAGATI ICT platform, and gave important directions. We’re dedicated to giving you the very best of the fruitful summary, with a focus on current affairs, only useful information, and of course, time saving information excerpts from daily newspaper articles. The issuer of a bond promises to pay back a fixed amount of money every year until the expiry of the term, at which point the issuer returns the principal amount to the buyer. They can be denominated in both foreign and domestic currency. Sovereign Gold Bonds are government securities denominated in grams of gold. A large amount of physical gold in the form of gold bars and coins are kept in every Indian household as savings. Sovereign bonds, and what are their risks and rewards? Despite a progressive relaxation in Covid curbs over the past six months, data shows that the number of gram panchayats that registered demand for work under MGNREGS this year have gone up, compared to previous years. A sovereign bond is a specific debt instrument issued by the government. The main objective of the scheme was to develop a financial asset as an alternative to purchasing metal gold, thus also aimed at changing the habits of Indians from saving in physical… Just like other bonds, these also promise to pay the buyer a certain amount of interest for a stipulated number of years and repay the face value on maturity. This provides an insured liquid val… They can be denominated in both foreign and domestic currency. The scheme facilitates the gold depositors to earn interest of 2.25% annually for a short-term deposit of one year to three years. Farmers are protesting against the recently enacted farm laws by converging on Delhi’s highways connected to neighbouring states. To complement your preparation for the upcoming exam, check the following links: Some of the highlights of the Sovereign Gold Bond Scheme have been discussed in the table given below: Gold Bond is an initiative taken by the Government of India in accordance with Reserve Bank of India to reduce the demand for physical gold as the increasing import of gold is affecting the growth and investment of the country. 5,334 per gram. 2 -500 gm per person per year. To know more about the benefits of Gold Monetisation Scheme, refer to the linked page. The scheme opens for subscription on … National governments have been issuing bonds for centuries, so the risks are well-known. 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Developments in current affairs articles for UPSC preparation on current issues and topics Satellite EOS-01 and nine customer satellites pay.