The government launched the first tranche of sovereign gold bonds for the current fiscal offering a 2.5 per cent annual interest to investors.
The latest issuance of bonds is part of the government’s efforts to garner as much as Rs 5,000 crore from all the three gold schemes this fiscal — the same as 2017-18 (Revised Estimate). Applications for the bond will be accepted from April 16 to April 20, the finance ministry said in a statement. Bonds will be issued to eligible applicants on May 4. Investors will get the interest payable semi-annually on the nominal value of investment.
The sovereign gold bond, gold monetisation scheme and Indian gold coin were launched by Prime Minister Narendra Modi in late 2015, as the government wanted to discourage import of the precious metal and curb its damaging impact on trade balance. The gold schemes are, however, still far from a roaring success. The government had budgeted to mop up Rs 10,000 crore from the three schemes in 2016-17, but could raise only Rs 3,451 crore, which was equivalent of just around 2 per cent of the country’s annual consumption.