PIB ANALYSIS FOR UPSC CIVIL SERVICES EXAM
- Sovereign Gold Bond Scheme
- Atal Pension Yojana
1 . Sovereign Gold Bond Scheme
Sovereign Gold Bond Scheme 2018-19 (Series III) – Issue Price
What is Sovereign Gold Bond (SGB)
- SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold.
- Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
- The Bond is issued by Reserve Bank on behalf of Government of India.
- The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption.
- The SGB offers a superior alternative to holding gold in physical form.
- The risks and costs of storage are eliminated.
- Investors are assured of the market value of gold at the time of maturity and periodical interest.
- SGB is free from issues like making charges and purity in the case of gold in jewellery form.
- The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.
Rate of Interest
- The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
Minimum and maximum limit for investment
- The Bonds are issued in denominations of one gram of gold and in multiples thereof.
- Minimum investment in the Bond shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March).
- In case of joint holding, the limit applies to the first applicant.
- The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market.
- The ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions
2 . Atal Pension Yojana
Easy to Explain Benefits drive Atal Pension Yojana (APY) backed by Government of India’s Guarantee;The Subscriber base under APY has crossed 1.24 crore mark; More than 27 lacs new subscribers have joined the Scheme during the Current Financial Year 2018-19
What is Atal Pension Yojana?
- The Atal Pension Yojana (APY) is the guaranteed Pension Scheme of Government of India administered by PFRDA.
- APY mainly focused upon the unorganised sector workers.
- Under the Atal Pension Yojana guaranteed minimum pension of Rs.1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given from the age of 60 years depending on the contributions by the subscribers.
- The age of the subscriber should be between 18 – 40 years.
- He / She should have a savings bank account/ post office savings bank account
For how many Years Government will co-contribute
- The co-contribution of the Government of India is available for 5 years
- The beneficiaries, who are covered under statutory social security schemes, are not eligible to receive Government co-contribution under APY.