The government will on Monday launch the seventh tranche of sovereign gold bonds, offering a 2.5 per cent annual interest to investors. Applications for the bond will be accepted from February 27 to March 3, the finance ministry said on Thursday. The bonds will be issued to eligible applicants on March 17. The investors will get the interest payable semi-annually on the nominal value of investment.
The latest tranche of bonds is part of the government’s efforts to garner as much as Rs 3,809 crore from all the three gold schemes this fiscal. The sovereign gold bond, gold monetisation scheme and Indian gold coin were launched by Prime Minister Narendra Modi during 2015, as the government wanted to discourage imports of the precious metal and curb their debilitating impact on trade balance.
The gold schemes are still far from a roaring success. The government had budgeted to mop up Rs 10,000 crore from the three schemes in 2016-17 but had to settle at Rs 3,809 crore in the revised estimate that is equivalent of just around 2 per cent of the country’s annual consumption.