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

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more