Skip to main content

RBI to notify sovereign gold bond scheme soon

By
The Reserve Bank of India ( RBI) will soon notify a sovereign gold bond scheme. This follows the notification of a gold monetisation scheme last week. The government will launch three new schemes: Apart from bonds, the others pertain to gold monetisation and selling of gold coins. The launch would be “ on or before November 9,” Saurabh Garg, joint secretary in the Union finance ministry, said while addressing a workshop organised by the Indian Institute of ManagementAhmedabad’s gold policy centre.
For gold bonds with a sovereign guarantee, a government circular had earlier said investors would have to deposit cash, to be calculated in terms of the price and the quantity of gold one wants to invest. During maturity, money would be paid keeping in mind the prevailing gold prices; interest would be paid every year.
Earlier, the scheme was scheduled to be launched on November 4. Now, it is said it will be launched on November 5 so that by Dhanteras, all bank branches and post offices are equipped for it. However, RBI is yet to issue a final notification on gold bonds, the interest rate to be paid to investors and the prices to be arrived at for gold schemes.
“A final notification clarifying all these issues is expected in the near future,” said Garg.
RBI’s stand on the interest to be paid for medium- and long- term deposits under the gold monetisation scheme differs from that stated in the government’s September circular. “ The final notification will clarify all doubts,” said Garg. The government will also sell Ashok Chakra- embossed gold coins of five g and 10 g. While the pricing of these coins isn’t known, a refiner said, “ It will be at a premium to the market price.” Garg said, “ The government will also sell 20 g gold units in bullion form.”
Business Standard, New Delhi, 28th Oct. 2015

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more