The government on Wednesday approved a new sovereign gold bond scheme in order to incentivise people to park their gold assets in a paper format under the gold bond scheme, up to 500 grams worth of bonds per annum can be bought by an individual with lock-in of five-seven years and appropriate interest so that they are protected from volatility.
It was approved by a meeting of the cabinet presided over by Prime Minister Narendra Modi. The mobilized gold will also supplement RBI’s gold reserves and will help in reducing the government’s borrowing cost.
