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Mumbai, Apr 17 () The issue price for the Sovereign Gold Bond has been fixed at Rs 4,639 per gram of the yellow metal, the Reserve Bank said in a statement on Friday. The Sovereign Gold Bond Scheme 2020-21-Series I will be opened for subscription from April 20 to 24, 2020. Earlier this week, the central bank had said the government will issue Sovereign Gold Bonds (SGBs) in six tranches beginning April 20 till September. Sovereign Gold Bond 2020-21 will be issued by the Reserve Bank of India (RBI) on behalf of the government. "The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period...works out to Rs 4,639 per gram of gold," the RBI said. It further said the government has also decided to offer a discount of Rs 50 per gram to those investors applying online and where payment against the application is made through digital mode. For such investors, the issue price of bond will be Rs 4,589 per gram of gold. The bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram and the tenor of the SGB will be eight years with exit option after fifth year to be exercised on the interest payment dates. The bonds are restricted for sale to resident individuals, HUFs, trusts, universities and charitable institutions. The minimum permissible investment will be 1 gram of gold and the maximum limit of subscription shall be 4 Kg for individuals, 4 Kg for HUFs and 20 Kg for trusts and similar entities per fiscal (April-March). The gold bond will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India (SHCIL), designated post offices, and recognised stock exchanges (NSE and BSE). The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings. NKD BAL ABMABM

Gold bond issue price fixed at Rs 4,639/gm: RBI

In order to attract masses to invest in gold, the Indian government announced various gold investment and savings schemes, like the Gold Monetisation Scheme. However, these schemes got a lukewarm response by people due to lack of awareness, says a recent study by researchers of Institute for Financial Management and Research (<keyword id="218689" type="ORGANIZATION" weightage="100" keywordseo="IFMR">IFMR</keyword>), funded by India Gold Policy Centre (IGPC) of the Indian Institute of Management Ahmedabad (<keyword id="42512" type="COMPANY" weightage="100" keywordseo="IIM-A">IIM-A</keyword>). For the study, researchers covered 1000 respondents across four districts, namely Kolhapur in Maharashtra, Coimbatore in Tamil Nadu, Hooghly in West Bengal and Saharanpur in Uttar Pradesh. As per the results, out of total 1000 respondents, only five persons were aware about government's <keyword id="2212607" type="UNKNOWN" weightage="100" keywordseo="gold-schemes">gold schemes</keyword>, such as Gold Monetisation Scheme, Sovereign Gold Bond Scheme and Gold Coin Scheme. "We found that people had little or no awareness about these three gold schemes, which were introduced two years back by the Centre. Out of 1000 respondents in four districts, only five knew about these schemes," said Misha Sharma, one of the researchers from IFMR. Experts are of the opinion that the government should start marketing the schemes so that people can be made aware. "Around 15,000 tonnes of gold, in the form of jewellery is lying idle with citizens across the country. The study had revealed that people are willing to invest in these schemes if they got adequate information about them. It shows that there is indeed a potential," said IGPC Head Prof. Arvind Sahay. "Apart from beefing up marketing efforts, banks should also be motivated to promote gold loan, so that they go out and convince people to opt for such loans. We don't see such motivation by banks at present," he added. (Image source Good Moneying)

Government's gold schemes are not attracting masses, says IGPC IIM-A study

New Delhi, Jun 22 () State Bank of India (SBI) has mobilised 13,212 kg of household and institutional gold through the Gold Monetisation Scheme (GMS), according to the state-owned bank's annual report. It added that the country's largest lender collected as much as 3,973 kg of gold during 2019-20 under the GMS, a programme launched by the government to utilise gold lying idle with individuals as well as trusts. "During FY2020, (the) bank mobilised gold amounting to 3,973 kgs, bringing the cumulative mobilisation to 13,212 kgs," said SBI in the report. The government launched the GMS in November 2015 to mobilise idle gold held by households and institutions. The objective of the scheme was to facilitate use of idle gold for productive purposes, and also reduce the country's dependence on imports. The bank further said that during 2019-20, it mobilised 647 kg (Rs 243.91 crore) through sovereign gold bonds (SGB), thus taking the total gold mobilised since inception of the scheme to 5,098 kg (Rs 1,561 crore). The SGB scheme was introduced by the government during 2015-16 to promote digital gold instead of physical gold for investment purposes. As a primary player in the field of bullion banking, the bank has been making available metal gold loan to jewellers engaged in manufacturing of gold ornaments for the domestic and export purposes. During 2019-20, the bank extended metal gold loan to jewellers to the extent of 22,255 kg and sold 2,522 kg of gold under the 'Sale of Gold' scheme to jewellers and traders. NKD CS HRS

SBI mobilises 13,212 kg gold through Gold Monetisation Scheme

The new series of Sovereign Gold Bonds 2021-22 will be opened May 17-21, 2021, and the issue price during the subscription period shall be ₹4,777 per gram. The settlement date under the Series I scheme had been fixed for May 25. The government, in consultation with the Reserve Bank of India, has decided to allow discount of ₹50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors, the issue price of the Gold Bond will be ₹4,727 per gram of gold. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/go-air-has-filed-for-a-3600-crore-ipo-at-a-very-desperate-time/articleshow/82626097.cms" data-type="tilCustomLink" target="_blank">Go Air has filed for a ₹3,600 crore IPO at a very desperate time</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/markets/news/heres-why-the-spike-in-inflation-in-the-us-may-worry-markets-in-india/articleshow/82597218.cms">Here's why the spike in inflation in the US may worry markets in India ⁠— but experts say don’t panic yet</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/whatsapp-responds-to-privacy-criticism-by-alleging-other-apps-like-zomato-ola-aarogya-setu-zoom-google-and-other-apps/articleshow/82570897.cms">WhatsApp responds to privacy criticism by alleging that other apps and tech companies also show disdain for user privacy</a>

There is an online discount on the new Sovereign Gold Bond Scheme opening on Monday priced at ₹4,777 per gram

New Delhi, May 21 () In a bid to provide liquidity to NBFCs and HFCs with low credit ratings, the government has approved Partial Credit Guarantee Scheme (PCGS) 2.0 to address temporary cash flow mismatch of otherwise solvent entities of the sector. The Union Cabinet headed by Prime Minister Narendra Modi approved the scheme on Wednesday. Following the approval from the Cabinet, the scheme has now become operational and its framework has been communicated to banks. The scheme covers not only non-banking financial companies (NBFCs) and Housing Finance Companies (HFCs) but also micro-finance institutions (MFIs). The scheme will cover securities which are low in ratings and even unrated paper, according to Frequently Asked Questions (FAQs) issued by the Ministry of Finance. "The tenure of the bonds or Commercial Papers (CPs) eligible for the purchase under this scheme shall be from 9 months to 18 months except for unrated paper whose original or initial maturity should not exceed one year," it said. All bonds or CPs purchased by public sector banks under this scheme will be primary issuance only and the government guarantee on purchase of the bonds or CPs will be co-terminus with the tenure of the instrument. Under the PCGS 2.0, sovereign guarantee of up to 20 per cent of first loss will be provided to state-owned banks for purchase of bonds or CPs of NBFCs, MFIs and HFCs having a credit rating of AA or below. According to a senior official of public sector banks, this is a good scheme at a time when banks are flushed with liquidity and very little avenue to deploy. NBFCs/HFCs, which have reported under Special Mention Account (SMA-1) category on technical reasons alone during the last one year period prior to August 1, 2018, will be eligible for benefit under the scheme. Earlier, NBFCs/HFCs reported as SMA-1 or SMA-2 during the specified period were ineligible. The SMA-1 refers to those accounts where the principal or interest payment remains overdue between 31-60 days, while SMA-2 pertains to those where the overdue period is between 61-90 days. The government has also relaxed the net profit criteria under the scheme. Henceforth the entities which have made net profit in at least one of the three financial years of 2017-18, 2018-19 and 2019-20 will be eligible. Earlier, entities which made a net profit in 2017-18 or 2018-19 were only eligible. The existing PCGS, it may be mentioned, was issued on December 11, 2019 offering sovereign guarantee of up to 10 per cent of first loss to PSBs for purchasing pooled assets rated BBB+ or above up to Rs 1 lakh crore, from financially sound NBFCs. Since NBFCs, HFCs and MFIs play a crucial role in sustaining consumption demand as well as capital formation in the small and medium segment, it is essential that they continue to get funding without disruption, and the extended PCGS is expected to systematically enable the same, it said. DP MKJ

Govt allows banks to buy securities of low-rated NBFCs under PCGS 2.0

<ul class="summary-list"><li><keyword id="11922736" type="UNKNOWN" weightage="60" keywordseo="g7" source="Orion">G7</keyword> nations want to cut off <keyword id="11894337" type="UNKNOWN" weightage="60" keywordseo="russia" source="Orion">Russia</keyword>'s access to emergency funding from organizations like the IMF and the World Bank.</li><li>Moscow is expected to default on <keyword id="12012706" type="UNKNOWN" weightage="60" keywordseo="debt" source="Orion">debt</keyword> after sanctions blocked Russia from accessing foreign currency and gold reserves. </li></ul>As Russia sits on the brink of default, the world's top economies have vowed to prevent it from tapping emergency funding that was used in a prior debt crisis.On Friday, G7 nations pledged to cut off Moscow's access to lenders like the International Monetary Fund and the World Bank as Russia ramps up its <a href="https://www.businessinsider.com/live-updates-russia-ukraine-crisis-2022-2?_ga=2.33801889.1825890120.1647268090-1549159828.1639597394">assault on Ukraine.</a> "Russia cannot grossly violate international law and expect to benefit from being part of the international economic order," according to a statement from the US, Canada, Britain, Germany, France, Italy, and Japan, who also pledged to curtail its international trade with the West.Sources of emergency funding were key during a previous Russian currency and debt crisis. The government received a $22.5 billion bailout from the IMF and other lenders in 1998 as it defaulted on sovereign debt.Now, the effort to block IMF and World Bank funding comes as Russia suffers another debt crisis after sanctions froze Moscow's foreign currency and gold reserves. Russia must make a <a href="https://markets.businessinsider.com/news/stocks/russia-stock-market-closed-bonds-default-sovereign-debt-deadline-2022-3">$117 million debt payment Wednesday</a> on two dollar-denominated bonds. But the finance ministry has said its <a href="https://www.reuters.com/markets/rates-bonds/russia-says-sovereign-bond-payments-will-depend-sanctions-2022-03-06/">sovereign bond payments depend on Western sanctions</a>, and if it does pay — it'll do so in rubles. This raises the technical possibility of a debt default, a likelihood that seems more certain after Fitch last week downgraded Russia's credit rating and said a <a href="https://markets.businessinsider.com/news/stocks/russia-default-credit-debt-sovereign-markets-oil-restrictions-sanctions-ukraine-2022-3?utm_medium=ingest&amp;utm_source=markets">sovereign default is "imminent.</a>"<a href="https://markets.businessinsider.com/news/stocks/russia-ukraine-war-invasion-moodys-fitch-credit-rating-markets-economy-2022-3?utm_medium=ingest&amp;utm_source=markets">Moody's and S&amp;P Global</a> too have cut their rating outlook for Russia, meaning that all three top rating agencies see the country's credit as junk.

You Searched For "Sovereign gold bond scheme benefits" and got 6 results

Gold bond issue price fixed at Rs 4,639/gm: RBI

PTI

Government's gold schemes are not attracting masses, says IGPC IIM-A study

BI India Bureau

SBI mobilises 13,212 kg gold through Gold Monetisation Scheme

PTI

There is an online discount on the new Sovereign Gold Bond Scheme opening on Monday priced at ₹4,777 per gram

IANS

Govt allows banks to buy securities of low-rated NBFCs under PCGS 2.0

PTI

Russia may be cut off from the world's lender of last resort as bonds head toward default

Phil Rosen

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