Sovereign Gold Scheme: This gold bond scheme of RBI gave bumper returns to investors
Sovereign Gold Scheme: The government is always introducing new programs to raise people’s incomes. Today, we’ll tell you about one such program where investors made large investments and now see their money double. This program is called the Sovereign Gold Scheme. Physical gold prices are steadily declining these days. Customers in such a scenario expect the government to promptly redeem the Sovereign Gold Bond funds. This is because, during the last eight years, it has provided investors with a colossal return of 160 percent.
This initiative was started by former Union Minister Arun Jaitley. In the previous eight years, investors’ money has quadrupled thanks to the 2016–17 Series-3 gold bond. However, even after more than half of the current fiscal year has gone by, investors are still unable to withdraw their money from the bond. The Reserve Bank of India, or RBI, had set November 16 as the bond’s redemption date. The RBI also disclosed the amount of money that investors will get per gram. The investors have yet to receive a single payment.
When was the installment due?
In the most recent fiscal year, the last Sovereign Gold Bond installment was issued. The bond was last redeemed by investors on February 21, 2023–2024. The government has gathered a total of Rs 72,274 crore and disbursed 67 payments under this plan so far.
How is the cost determined?
The average of the gold price’s three-day closing price is used by the RBI to determine the price of the Sovereign Gold Bond. The bank determines the value by using the India Bullion and Jewelers Association Limited report as a guide and uses 999 pure gold as the benchmark.
Sovereign Gold Bond: What Is It?
One kind of certificate that the RBI issues is the Sovereign Gold Bond. Investors make these investments based on the kilos of gold. In addition to offering the market price of gold upon maturity, this plan also offers a yearly interest rate of 2.5 percent for investors. The government is taking its time distributing this sum of interest, which is paid out every six months. People have made significant investments in this scam because they believe it to be gold.
