The central government will not sell gold bonds..!?

Government sources have said that the central government will no longer sell the sovereign gold bonds that it introduced with great dreams, CNBC-TV18 reported. government officials have also said it is a 'high cost and complex' investment vehicle. In 2015, the central government led by prime minister Modi introduced gold bonds to curb the import of gold in india and correct the country's current account deficit. While there were many criticisms of gold bonds from the beginning, people slowly started investing in them. In the 67 tranches of SGB issued by the reserve bank of india (RBI) on behalf of the central government, investors can invest Rs. 72,274 crores invested. Four of these bonds have fully completed their 5-year maturity and have returned money to investors. That means the money has been repaid to those who bought the bonds. For those who invested in the top four gold investment bonds issued between 2015 and 2017, the government's repayments doubled the investment, according to market research. In the budget statement presented in July, the burden on the government has been reduced by reducing the import duty on gold.
0In the latest budget documents, the central government has said that it owes these gold investment bond investors worth around Rs 85,000 crore. This shows a nine-fold increase in the debt burden from a mere Rs 10,000 crore at the end of march 2020.

Gold investment bonds have become a burden for the government due to the continuous rise in gold prices, so it has been reported that the government will no longer issue gold bonds. And since the gold bond is listed and traded in the secondary market, investors are willing to pay 8 percent more than the august 14 price.
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Sowmiya Sriram

23/08/2024 07:00 PM