← 2 November 2026's Current Affairs · Economy GA Prelims ★★★☆☆ Mains ★★★☆☆
Sovereign Gold Bond 2021-22 Series VII due for premature redemption
ଖବରରେ କାହିଁକି?
Exit after year five, not eight: the Sovereign Gold Bond rules GS3 banking questions test
SGB Series VII premature redemption falls due on 2 November 2026.
Why it matters: general awareness
What you need to know
2 ମିନିଟ
The RBI announced the redemption price for premature redemption of the 2021-22 Series VII Sovereign Gold Bond, issued on 2 November 2021, due on 2 November 2026.
Premature exit is permitted after the fifth year on an interest payment date, and the price is based on the average closing price of gold of the preceding weeks.
ଉତ୍ସ: Topper IAS editorial (PIB / The Hindu / Indian Express)
ମୁଖ୍ୟ ତଥ୍ୟ
Remember these
- RBI issues Sovereign Gold Bonds on behalf of the Government of India
- Series VII of 2021-22 was issued on 2 November 2021; premature redemption falls due on 2 November 2026
- Tenor is 8 years; premature exit is allowed after the 5th year on an interest payment date
- Fixed interest of 2.5 per cent per annum on the nominal value, paid half-yearly
- Redemption price is based on the average closing gold price of the preceding weeks
ପ୍ରିଲିମ୍ସ · ମେନ୍ସ
How the exam will ask it
ପ୍ରିଲିମ୍ସ
- Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India.
- The Sovereign Gold Bond has a tenor of eight years, with premature redemption permitted after the fifth year on an interest payment date.
- Sovereign Gold Bond investors earn fixed interest of 2.5 per cent per annum on the nominal value, in addition to any gain linked to the gold price.
- The redemption price is linked to the average closing price of gold of the preceding weeks.
ମେନ୍ସ
GS3 (Economy): SGBs were designed to channel household demand for physical gold into financial instruments and reduce gold imports and the current account pressure. The scheme pairs gold-price linkage with a fixed 2.5 per cent interest, but the Government bears the rising cost when gold prices climb. The way forward is to balance fiscal cost against import savings, and to deepen options such as gold ETFs and the Gold Monetisation Scheme.
Quick recall
Answer before you reveal
A tranche of Sovereign Gold Bonds issued in 2021-22 became eligible for premature redemption. Consider the following statements about the Sovereign Gold Bond Scheme:
- The bonds are issued by the Reserve Bank of India on behalf of the Government of India.
- The tenor is eight years, with premature exit permitted after the fifth year.
- Investors earn a fixed rate of interest of 2.5 per cent per annum on the nominal value.
How many of the above statements are correct?
- None
- Only one
- Only two
- All three
ଉତ୍ତର ଦେଖନ୍ତୁ
ଉତ୍ତର: D — Correct: All three — All three are correct: RBI issues the bonds, the tenor is eight years with exit after year five, and interest is fixed at 2.5 per cent. • None — wrong: Every statement is accurate, so 'None' is wrong. • Only one — wrong: All three hold, so 'Only one' undercounts. • Only two — wrong: All three hold, so 'Only two' undercounts.
Convert this topic into marks
Today's 10-MCQ test · instant analysis · Powered by AdaptIQ