Question
What is the interest rate earned on SGBs?
Refer to the following information to answer the next 4 questions (Q23 to Q26) The Indian government has introduced a unique investment opportunity linked to the value of gold, aimed at reducing the physical demand for the precious metal and promoting financial savings. This investment option is available in electronic form and is designed to provide both a fixed interest income and the potential for capital appreciation based on the prevailing market price of gold. The bonds can be held by individuals, trusts, and other eligible entities, offering a safer and more cost-effective alternative to holding physical gold. Investors are required to meet certain minimum investment criteria, and the bonds come with a specified tenure during which they are held. These bonds are also eligible for trading on stock exchanges, providing liquidity to investors. Currently, the Reserve Bank of India (RBI) has raised funds equivalent to 139 tonnes of gold through SGBs, which is alarming when compared to the 822 tonnes of gold reserves held by the Central Bank. SGBs now account for 17% of India's gold reserves—a significant portion without physical backing.
More Banking System in India Questions
- In six sigma under the define phase, which of the following is used to find the root of a problem?
- With respect to the Direct Tax Proposal under Union Budget 2023-24, consider the following statement: I. 45% of the returns on tax payers' portal were proc...
- What is the role of GFCs in driving economic growth?
- International Financial Services Centres Authority (IFSCA) has signed a FinTech Co-operation Agreement (CA) with which of the following organisations to fa...
- What are the different modes of paying stamp duty in the e-Stamping system?
- Moneys held by Government in trust are kept in the Public Account. The Public Account draws its existence from which of the following article of the Consti...
- A project requires an investment of ₹15 lakh and generates cash inflows of ₹3.5 lakh/year for 7 years. If the discount rate is 10%, should the project be a...
- Under the regulation of which act can scheduled commercial bank take equity stake in a payments bank to the extent permitted?
- Consider the following statements: I. Emoluments of the President. II. Salaries and allowances of the Chairman and the Deputy Chairman of the Rajya Sabha I...
- Given the following information, calculate the Deferred Tax Asset (DTA) or Deferred Tax Liability (DTL) amount if the tax rate is 30%: Profits as per Incom...
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
- 200 Questions with Detailed Solutions
- Section-wise Coverage (GA, English, Quant & Reasoning)