The Government has collected Rs 31,290 crore from Sovereign Gold Bond (SGB) Scheme since its launch in 2015, Finance Minister Nirmala Sitharaman informed Parliament on Monday.
With the main objective to develop an alternate financial asset and as an alternative to purchasing/holding of physical gold, the SGB Scheme was notified by the Government of India on November 5, 2015, Sitharaman said in a reply in Lok Sabha. "The response of public on the SGB scheme has resulted in the collection of Rs 31,290 crore since 2015-16," she said. Talking about features of the scheme, the Finance Minister said these bonds are issued on payment of Indian rupees and is denominated in grams of gold. Bonds are issued on behalf of the Government of India by RBI, and have a sovereign guarantee. "The bonds are restricted for sale to resident Indian entities. The investment limits are presently 4 kgs per fiscal year, for individuals and Hindu Undivided Family (HUF) and 20 kgs per fiscal year for trusts and similar entities. The ceiling will be counted on financial year basis and will include the SGBs purchased during the trading in the secondary market," she said. The ceiling on investment will not include the holdings as collateral by banks and financial institutions, she added.