PIB Analysis (Prelims Focus) Date: 2/11/2018


Topics Covered

  1. Sovereign Gold Bond Scheme
  2. 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.

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