Your email address will not be published. What exactly are sovereign bonds? The blue bond, as well as the program of marine and ocean-related activities it will support, was prepared with assistance from the World Bank and the Global Environment Facility. They can be denominated in both foreign and domestic currency. The Sovereign Gold Bond Scheme provides flexible gold denomination in terms of purchasing gold. The Gold Bonds are issued as Government of India Stock under Government Securities Act, 2006. The reasons for craze for gold are obvious. Gold having a finite value in terms of its weight or amount cannot be debased during years as against to currency whose value is determined by the market forces. Be the first to rate this post. Buy and Sale: Investors have to pay the issue price in cash and the bonds will be redeemed (bought back by the issuer) in cash on maturity. NIVAR Cyclone made a landfall 30 km north of Puducherry and 115 km south of Chennai on the night of 25th November. India’s agricultural exports are up 4.6% year-on-year in dollar terms during April-September, even while the overall goods exports saw a decline. A bond is like an IOU. Similar to bank deposits, instead of … The sovereign blue bond was issued with a ceiling value of US$15 million, with a maturity of 10 years. They are substitutes for holding physical gold. The Union Cabinet has approved the Phase II and Phase III of Dam Rehabilitation and Improvement Project (DRIP) to improve the safety and operational performance of 736 dams in 19 states. The Shanghai Cooperation Organisation (SCO) holds special significance for India. India's benchmark 10-year government bond has a … The first phase of auction of coal blocks for commercial use witnessed conservative bidding (bids were not very high) from industry players. Sovereign Bond: A sovereign bond is a specific debt instrument issued by the government. Latest current affairs articles for Civil Services Examination. Despite a progressive relaxation in Covid curbs over the past six months, data shows that the number of gram panchayats that registered demand for work under MGNREGS this year have gone up, compared to previous years. The sovereign gold bond scheme was launched in November 2015 to reduce the demand for physical gold and shift a part of the domestic savings, used for the purchase of gold, into financial … The government—both the Centre and the states—accounts for only a third of the annual overall healthcare expenditure in the country. These gold bonds are available in multiple weight denominations starting from 1 gram. Mains level: Viability of such Blue Bonds for India. The business case for a sovereign blue bond was initially identified through support to Seychelles from HRH Prince of Wales’ Charities ... UPSC CDS 2 Answer Key 2019-20 Released @upsc… In the Budget speech, Finance Minister announced that the Indian “government would start raising a part of its gross borrowing … A sovereign bond is a debt security issued by a national government. These Gold bonds can be purchased through multiple payment modes such as cheques, cash, DDs or electronic transfer. Farmers are protesting against the recently enacted farm laws by converging on Delhi’s highways connected to neighbouring states. Issues The current controversy relates to India’s sovereign bonds that will be floated in foreign countries and will be denominated in foreign currencies. How does the Sovereign gold bond work? Sovereign debt is also called government debt, public debt, and national debt. Further, they are priced as per the underlying spot gold prices. Recently, Reserve Bank of India (RBI) has decided to issue Sovereign Gold Bonds (SGBs) in six instalments, from April 2020 to September 2020. Articles for Civil Service Aspirants in India. Resource mobilisation is a critical function in any economy for ensuring basic facilities to its citizens, and for sustainable growth. The issuer of a bond promises to pay back a fixed amount of money every year until the expiry of the term, at which point the issuer returns the principal amount to the buyer. Current affairs articles for upsc preparation on current issues and topics. When a government issues such a bond it is called a sovereign bond. The population of the squirrel in India declined by 30 per cent over the last two decades. Key facts: Let us first understand what sovereign bonds are. A large amount of physical gold in the form of gold bars and coins are kept in every Indian household as savings. A bond is like an IOU. Aspirants would find this topic very helpful while preparing for the IAS Exam. The Sovereign Gold Bond Scheme can be availed by the individuals falling under the following categories: Government schemes are an important part of the UPSC syllabus. The Election Commission (EC) has now approached the government to permit Non-Resident Indians (NRIs) to cast their votes through postal ballots. These financial assets include bonds, stocks, real estate and precious metals. National governments have been issuing bonds for centuries, so the risks are well-known. About the Sovereign Gold Bond Scheme: The sovereign gold bond was introduced by the Government in 2015. The issuer of the bond promises to pay back a fixed amount of money every year until the expiry of the term, at which point the issuer returns the principal amount to the buyer. They can also trade these bonds on stock exchanges subject to notifications of the Reserve Bank of India. Joe Biden was recently elected the 46th President of the United States. These bonds are backed by a sovereign guarantee and can also be held in Demat form. Before the appointment, he has been serving as an Information Commissioner (IC) in the Central Information Commission since January 1, 2019. Ever since the beginning of the Green Revolution in the mid-1960s, India has been supporting its farmers through input subsidies and minimum support prices of important crops. The fifth tranche of Sovereign Gold Bond (SGB) Scheme 2020-21 opens today and is capped at Rs. Gold has proved to be a safe investment during the times of inflation. They can be denominated in both foreign and domestic currency. Context. The Sovereign Gold Bond Scheme was introduced in the Union Budget 2015-16 by the Union Cabinet which was chaired by PM Narendra Modi. Apart from a fixed return, they offer the maximum safety, and are also actively traded in the secondary market. 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