What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and 'Gold Monetization Scheme'? 1. To bring the idle gold lying with India households into the economy 2. To promote FDI in the gold and jewellery sector 3. To reduce India’s dependence on gold imports Select the correct answer using the code given below:

QUESTION

Medium

Economy

Prelims 2016

What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and 'Gold Monetization Scheme'?

To bring the idle gold lying with India households into the economy
To promote FDI in the gold and jewellery sector
To reduce India’s dependence on gold imports

Select the correct answer using the code given below:

Select an option to attempt

Explanation

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash, and the bonds will be redeemed in cash on maturity. The Bond is issued by the Reserve Bank on behalf of the Government of India.

Gold Monetization Scheme (GMS), which modifies the existing Gold Deposit Scheme (GDS) and Gold Metal Loan Scheme (GML), is intended to mobilise gold held by households and institutions of the country and facilitate its use for productive purposes, and in the long run, to reduce the country's reliance on the import of gold.

Trusted by 2L aspirants