UPSC Notes EPFO Labour Law

2021-09-01 02:50:09 Sovereign Gold Bond Scheme 2015 - Complete Details

The Government of India introduced the Sovereign Gold Bond (SGB) Scheme in November 2015, to offer investors an alternative to physical gold. Over the years, the market has witnessed a considerable decline in the demand for physical gold. SGBs are government securities and are considered safe.

If you are looking to purchase an SGB, all you have to do is approach a SEBI authorized agent or broker. When you redeemed the bond, the corpus (as per the current market value) will be deposited into your registered bank account.

Basic Objective
India has an estimated 20,000 tonnes of gold lying idle with Indian households and institutions. Sovereign Gold Bond schemes aimed at bringing the gold lying with citizens into the economy, and reducing India’s dependence on gold imports.

Features of Gold Bond Scheme
SGBs are government securities denominated in grams of gold, wherein the basic unit is 1 gram. The minimum initial investment is 1 gram of gold, and the upper limit is 4 Kg of gold per individual investor. For entities such as trusts and universities, 20 Kg of gold is permissible. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.

Sovereign Gold Bond Scheme has a tenure of 8 years which can be withdrawn prematurely after 5 years on interest payment dates.

The Bond is issued by Reserve Bank on behalf of Government of India. They are substitutes for holding physical gold.

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 semiannually to the bank account of the investor and the last interest will be payable on maturity along with the principal.

These Gold bonds can be purchased through multiple payment modes such as cheques, cash, DDs or electronic transfer.

The Sovereign Gold Bond Scheme was launched under the Gold Monetization Scheme 2015.


Who should Invest in SGB Scheme
As a low-risk investment, it is perfect for investors with a low-risk appetite. As investor will get a guaranteed return of 2.5% plus current value of gold at the time of maturity.
Those who want to invest in gold and do not want to take any risk of storing physical gold can also go for SGBs. This is because it is easy to store this in Demat form, and nobody can steal it as they are in electronic form.


Who can apply for Sovereign Gold Bond
Any individual/association/trusts/HUFs having an Indian residency is eligible to invest in the Sovereign Gold Bond scheme. They can also jointly invest in these gold bonds as the eligibility criteria of the scheme.
The benefits of this scheme can also be availed by the minors provided this bond is purchased by the parents on their behalf.

Where to buy Sovereign Gold Bond
Investors can apply for the bonds through scheduled commercial banks and designated post offices. NBFCs, National Saving Certificate (NSC) agents and others, can act as agents and they are also traded on the Stock Exchange. Open / Comment

2021-09-01 02:50:09 Measures to control inflation

➨ Monetary Policy: Monetary policy can control the growth of demand through an increase in interest rates and a contraction in the real money supply. For example, in the late 1980s, interest rates went up to 15% because of the excessive growth in the economy and contributed to the recession of the early 1990s.

➨ Monetary measures of controlling the inflation can be either quantitative or qualitative. Bank rate policy, open market operations and variable reserve ratio are the quantitative measures of credit control, by which inflation can be brought down. Qualitative control measures involve selective credit control measures.

➨ Bank rate policy is used as the main instrument of monetary control during theperiod of inflation. When the central bank raises the bank rate, it is said to haveadopted a dear money policy. The increase in bank rate increases the cost ofborrowing which reduces commercial banks borrowing from the central bank.Consequently, the flow of money from the commercial banks to the public getsreduced. Therefore, inflation is controlled to the extent it is caused by the bankcredit.

➨ Cash Reserve Ratio (CRR) : To control inflation, the central bank raises the CRR which reduces the lending capacity of the commercial banks. Consequently,flow of money from commercial banks to public decreases. In the process, ithalts the rise in prices to the extent it is caused by banks credits to the public.

➨ Open Market Operations: Open market operations refer to sale and purchaseof government securities and bonds by the central bank. To control inflation,central bank sells the government securities to the public through the banks.This results in transfer of a part of bank deposits to central bank account andreduces credit creation capacity of the commercial banks. Open / Comment

2021-09-01 02:50:09 Net National Product (NNP)
Net National Product (NNP) in an economy is the GNP after deducting the loss due to depreciation.

NNP = GNP – Depreciation

NNP at Factor Cost:It is the value of NNP when the value of goods and services is taken at the production cost.
NNP at Market Price:It is the value of NNP at consumer cost.
NNP at market cost = NNP at factor cost + Indirect taxes – Subsidies

Closed Economy: An economy that does not maintain any economic relations with the rest of the world. Economic Goods: Those goods which are scarce in supply and, hence, command a price.
Nominal National Income: The money value of all the final goods and services produced in an economy during a year, estimated at current prices.
Real National Income: The money value of all the final goods and services produced in an economy during a year, estimated at some fixed prices.
Subsidy: It is the grant given on current account by the Government to the private industries and public corporations for selling certain goods at a price fixed by the Government.


National Income Measurement:
➨ Primary sector: all production units engaged in exploitation of natural resources like Agriculture, Fishing, Mining and Quarrying , Forestry and Logging
➨ Secondary sector: all production units engaged in transforming one good to another like Registered manufacture, unregistered, Construction, Electricity Gas Water supply
➨ Tertiary sector: all units engaged in producing services like Banking&Insurance, Trade, hotel, restaurant, transport, storage , Real estate dwelling, Public administration & defence, other services. Open / Comment

2021-08-31 16:23:23 Jahangir History and Biography - Mughal Dynasty









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2021-08-31 08:42:20 Learn English Grammar by ExamsCart









इंग्लिश सीखना हुआ आसान, जल्दी से देखे इंग्लिश ग्रामर के निमय






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