NASA’s Kepler Space Telescope spent nine years till 2018 on a planet-hunting mission in the Milky Way. Recently, Reserve Bank of India (RBI) has decided to issue Sovereign Gold Bonds (SGBs) in six instalments, from April 2020 to September 2020. Mains level: Viability of such Blue Bonds for India. The UN Commission on Narcotic Drugs (CND) recently voted to remove cannabis and cannabis resin from the list of most dangerous substances – the Schedule IV of the Single Convention on Narcotic Drugs, 1961. Be the first to rate this post. Sovereign Gold Bond Scheme (UPSC Notes):- Download PDF Here, Your email address will not be published. A large amount of physical gold in the form of gold bars and coins are kept in every Indian household as savings. Yashvardhan Kumar Sinha was appointed as the Chief Information Commissioner (CIC). The first phase of auction of coal blocks for commercial use witnessed conservative bidding (bids were not very high) from industry players. Key facts: The gold bonds can be availed either in paper or in demat form as per the convenience of an individual. 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. 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. Sovereign Gold Bond Scheme thus aims at investing these physical gold into financial savings through gold bonds. 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. They can be denominated in both foreign and domestic currency. 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. According to US space agency NASA, our Milky Way galaxy is filled with 300 million potentially habitable planets. How much of India’s population lives with disabilities? Sovereign Bond: A sovereign bond is a specific debt instrument issued by the government. Aspirants would find this topic very helpful while preparing for the IAS Exam. Gold has proved to be a safe investment during the times of inflation. How does the Sovereign gold bond work? Similar to bank deposits, instead of … Features: Can be purchased by resident citizens. The Malayan Giant Squirrel, found in the forests of India’s Northeast, may soon disappear, as per a study by the Zoological Survey of India (ZSI). Candidates should follow the latest developments in Current Affairs related to other government schemes for their UPSC 2020 preparation. Why in News? The sovereign gold bond scheme was launched in November 2015. Just like other bonds, these also promise to pay the buyer a certain amount of interest for a stipulated number of years and repay the face value on maturity. Context. The interest provided for the gold bond is 2.50% per annum which can be paid semi-annually on the nominal value. Sovereign Wealth Fund (SWF)- UPSC Notes Sovereign Wealth Fund which is also known as the sovereign investment fund is an investment fund for real and financial assets. The Gold Bonds are issued as Government of India Stock. The Election Commission (EC) has now approached the government to permit Non-Resident Indians (NRIs) to cast their votes through postal ballots. What exactly are sovereign bonds? 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However, the major advantage is that the bonds. Essentially, they are government securities issued in order to finance the fiscal deficit and manage the temporary cash mismatches of the government. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.The features of the Bond are given … It begins with conception as a single cell and continues through the embryonic, foetal, and postnatal periods, including infancy and toddlerhood, through a process of rapid, complex and dramatic development & differentiation. India has successfully launched its latest Earth Observation Satellite EOS-01 and nine customer satellites. The scheme facilitates the gold depositors to earn interest of 2.25% annually for a short-term deposit of one year to three years. Sovereign Bonds: During the recent Budget, the Indian finance minister announced plan of the government of India to borrow in foreign currency to finance the fiscal deficit. Today, sovereign … We’re dedicated to giving you the very best of the fruitful summary, with a focus on current affairs, only useful information, and of course, time saving information excerpts from daily newspaper articles. 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. To know more about the benefits of Gold Monetisation Scheme, refer to the linked page. Sovereign Gold Bonds are government securities denominated in multiples of grams of gold issued by RBI on behalf of the government. The quarterly Periodic Labour Force Survey (PLFS) released by the Ministry of Statistics and Programme Implementation (MoSPI) showed there was a steady dip in urban unemployment rate in October-December 2019, before nationwide lockdowns began. What exactly are sovereign bonds? Sovereign gold bonds are denominated in grams of gold and investments can be done in multiples of one gram with a maximum limit of 4 kg per person. These gold bonds are available in multiple weight denominations starting from 1 gram. The three companies are Zydus Cadila (vaccine candidate – ZyCoV-D), Bharat Biotech (vaccine candidate – Covaxin) and Serum Institute of India (SII) (vaccine candidate – Covishield). - UPSC Current Affairs Insight. India's benchmark 10-year government bond has a … The scheme also provides flexible investment where one can choose the amount he/she wants to invest. What exactly are sovereign bonds? 2 -500 gm per person per year. They can be denominated in both foreign and domestic currency. NIVAR Cyclone made a landfall 30 km north of Puducherry and 115 km south of Chennai on the night of 25th November. Current affairs articles for upsc preparation on current issues and topics. Its objective is to reduce the demand for physical … Continue reading "SOVEREIGN GOLD BONDS" It was launched to reduce the demand for physical gold and with an aim to invest a part of these physicals gold bars and coins that are purchased every year into financial savings in the form of gold bonds. The reasons for craze for gold are obvious. A bond is like an IOU. Context. They are substitutes for holding physical gold. The Gold Monetisation Scheme was introduced to replace the existing Gold Deposit Scheme (GDS), 1999. The sovereign blue bond was issued with a ceiling value of US$15 million, with a maturity of 10 years. Your email address will not be published. There is always a ready market for government securities. These financial assets include bonds, stocks, real estate and precious metals. Copyright 2020 - Powered by EliteAppzCreations, Economic Updates: Fourth tranche of sovereign gold bond opens for subscription, Ecological Bytes: Golden birdwing is India’s largest butterfly, COVID19 Updates: Evidence is emerging of Covid-19’s airborne spread, Best GS Bytes is now UPSC Current Affairs, Economic Bytes: 7.75% RBI bonds discontinued, Economic Bytes: Rich love electoral bonds, After SC lashing, DoT tells firms to pay ₹4L cr by Friday midnight, Global Concerns: Reading the Pakistan-Saudi rift, National Concerns: Unifying the Defense Resources, UN decides cannabis not a dangerous narcotic, India too votes to reclassify, Native squirrel could vanish from NE after 2050. National governments have been issuing bonds for centuries, so the risks are well-known. Sovereign debt forms a significant part of many institutional investment portfolios, and it is also increasingly popular with individual investors. A sovereign bond is a debt security issued by a national government. Just like other bonds, these also promise to pay the buyer a certain amount of interest for a stipulated number of years and repay the face value on maturity. 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… Then what is Sovereign Debt Crisis? These Gold bonds can be purchased through multiple payment modes such as cheques, cash, DDs or electronic transfer. The Indian Prime Minister recently visited the facilities of three biotechnology companies that are testing different COVID-19 vaccine candidates. In the Budget speech, Finance Minister announced that the Indian “government would start raising a part of its gross borrowing … 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 summit meeting was attended by the prime ministers of all other member-states – except India and Pakistan. (function() {var script=document.createElement("script");script.type="text/javascript";script.async =true;script.src="//telegram.im/widget-button/index.php?id=@bestgsbytes";document.getElementsByTagName("head")[0].appendChild(script);})(); Welcome to UPSC Current Affairs, your number one source for all the ready-to-grasp newspaper content. Government introduced these bonds to help reduce India’s over dependence on gold imports. Launched to reduce India's dependence on imported gold and lower current account deficit. A bond is like an IOU. Before the appointment, he has been serving as an Information Commissioner (IC) in the Central Information Commission since January 1, 2019. Sovereign Gold Bonds SGB's have a 8 year maturity period and were launched during the Budget 2015. The government—both the Centre and the states—accounts for only a third of the annual overall healthcare expenditure in the country. Small finance banks and payment banks cannot SGBs. Let us first understand what sovereign bonds are. Articles for Civil Service Aspirants in India. The grouping comprises: India’s strategic partner and friend, Russia. Sovereign debt is also called government debt, public debt, and national debt. Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date. When a government issues such a bond it is called a sovereign bond. Sovereign Gold Bond Scheme has a tenure of 8 years which can be withdrawn prematurely after 5 years on interest payment dates. 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. About Sovereign Gold Bonds Scheme In 2015, Government introduced the Sovereign Gold Bonds as substitutes of expensive gold imports that impact the current account deficit (CAD). These bonds are backed by a sovereign guarantee and can also be held in Demat form. Sovereign Gold Bonds are government securities denominated in grams of gold. Farmers are protesting against the recently enacted farm laws by converging on Delhi’s highways connected to neighbouring states. The maximum value of bonds an investor can buy is notified by the central government. The liquidity of gold in the market also comes into play as a financial insurance. Thursday, July 25, 2019. A sovereign bond is a specific debt instrument issued by the government. Sovereign debt is one of the oldest investment asset classes in the world. 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. Since the bonds are denominated in multiple of grams of gold, the minimum value one can purchase on is bond worth 1 gram of gold. The Sovereign Gold Bond Scheme provides flexible gold denomination in terms of purchasing gold. The population of the squirrel in India declined by 30 per cent over the last two decades. Further, they are priced as per the underlying spot gold prices. If such a bond is issued by the government it is called a sovereign bond. The fifth tranche of Sovereign Gold Bond (SGB) Scheme 2020-21 opens today and is capped at Rs. The scheme opens for subscription on … Issues The current controversy relates to India’s sovereign bonds that will be floated in foreign countries and will be denominated in foreign currencies. 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