Government announces Sovereign Gold Bond Scheme 2023-24

Current Context: Sovereign Gold Bond Scheme 2023-24. This is a scheme launched by the Government of India, in consultation with the Reserve Bank of India, to issue bonds that are linked to the price of gold.

• The scheme aims to provide an alternative to buying physical gold and to reduce the demand for imported gold. 

The scheme also offers some benefits to investors, such as:

• The bonds are issued in denominations of one gram of gold and multiples thereof.
• The bonds have a tenor of eight years with an option of premature redemption after fifth year.
• The bonds carry an interest rate of 2.5% per annum payable half-yearly.
• The bonds are exempt from capital gains tax if held till maturity.
• The bonds can be traded on stock exchanges or transferred to other eligible investors.
• The bonds can be used as collateral for loans.
• The first tranche of the scheme is open for subscription from June 19 to 23, 2023, at Rs. 5,926 per gram. 
• Online subscribers are also eligible for a discount of Rs. 50 per gram. The second tranche will run from September 11 to 15, 2023.

Question:

Q.1 What is the interest rate of the Sovereign Gold Bond Scheme 2023-24?
a. 2.5% per annum
b. 2.0% per annum
c. 1.5% per annum
d. 3.0% per annum