What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme”?

1. To bring the idle gold lying with Indian households into the economy
2. To promote FDI in the gold and jewellery sector
3. To reduce India’s dependence on gold imports

Select the correct answer using the code given below.

[UPSC Civil Services Exam – 2016 Prelims]

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (c)        

Explanation:

• The Sovereign Gold Bond Scheme was launched in November 2015 under the Gold Monetisation Scheme.
• Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold. The Gold Monetisation Scheme aims to mobilize household gold for productive purposes, reducing reliance on gold imports.
• All Scheduled Commercial Banks (excluding RRBs) are eligible to implement the scheme. The schemes are not specifically intended to promote FDI in the gold and jewelry sector.