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Final redemption of the Sovereign Gold Bond 2018-19 Series-II falls due on 23 October
വാർത്തയിൽ എന്തുകൊണ്ട്?
Eight years, not five: the Sovereign Gold Bond redemption price rule GS-III economy answers must state
SGB 2018-19 Series-II matures on 23 October 2026, redeemed at the average IBJA gold price of the previous three business days.
Why it matters: factual, Prelims-type
What you need to know
2 മിനിറ്റ്
The Reserve Bank of India has announced the final redemption of the Sovereign Gold Bond 2018-19 Series-II, issued on 23 October 2018, on 23 October 2026.
Sovereign Gold Bonds are issued by the RBI on behalf of the Government of India and are repayable on expiry of eight years.
The redemption price is the simple average of the closing price of 999-purity gold of the previous three business days, as published by the India Bullion and Jewellers Association.
ഉറവിടങ്ങൾ: Topper IAS editorial (PIB / The Hindu / Indian Express)
പ്രധാന വസ്തുതകൾ
Remember these
- RBI issues Sovereign Gold Bonds on behalf of the Government of India
- SGB 2018-19 Series-II was issued on 23 October 2018 and is redeemed on 23 October 2026
- Tenor of the bond is eight years from the date of issue
- Redemption price is the simple average of the closing price of 999-purity gold of the previous three business days
- Gold price is as published by the India Bullion and Jewellers Association (IBJA)
പ്രിലിംസ് · മെയിൻസ്
How the exam will ask it
പ്രിലിംസ്
- Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India and are denominated in grams of gold.
- The redemption price of an SGB is the simple average of the closing price of 999-purity gold of the previous three business days, as published by IBJA.
- SGBs are repayable on expiry of eight years from the date of issue.
മെയിൻസ്
GS-III (Indian economy): India's large household gold demand drives imports and pressure on the current account. SGBs, a gold monetisation instrument, let investors hold gold in paper form while the government borrows in gold-linked terms, though the fiscal cost rises when gold prices climb. The way forward is to balance investor appeal with the government's contingent liability and to deepen other gold monetisation options.
Quick recall
Answer before you reveal
Sovereign Gold Bonds, whose 2018-19 Series-II tranche is due for final redemption, are repayable on expiry of a tenor of:
- Five years
- Seven years
- Eight years
- Ten years
ഉത്തരം കാണിക്കൂ
ഉത്തരം: C — The correct answer is Eight years. The SGB notification makes the bonds repayable after eight years from the date of issue.
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