Chennai:
Fifty post offices of Chennai City region will be offering Sovereign Gold Bonds as an alternative for physical gold.
The scheme has been announced by the Union government so that the demand for physical gold is reduced by shifting a part of the investment into gold bonds.
Post Master General of Chennai City Region Merwin Alexander told Express that once the scheme is inaugurated on Thursday the 50 post offices in Chenai City region would be accepting the applications from Friday.
He said that 20 head post offices and 30 major post offices in Chennai city Region has been identified which will be taking in the applications under Sovereign Gold Bond scheme.
Interestingly, the bond will be issued to the public through e-mail or a print-out from post office and this too after 15 days.
To a query on whether the bonds could be misused, Alexander said that secondary evidence as well as information would be checked.
The Reserve Bank of India, in consultation with Government of India, has decided to issue Sovereign Gold Bonds. “We are only the outlets. We will get in the information and pass it to RBI who will issue the bonds which we have to sell it to public,” said Alexander.
The borrowing through issuance of the Bond will form part of market borrowing programme of the Union government. It may be recalled that the Union Finance Minister had announced in Union Budget 2015-16 about developing a financial asset, Sovereign Gold Bond, as an alternative to purchasing metal gold.
The Bonds will be denominated in multiples of grams of gold with a basic unit of one gram. The tenor of the Bond will be for a period of eight years with exit option from fifth year to be exercised on the interest payment dates.
Fifty post offices of Chennai City region will be offering Sovereign Gold Bonds as an alternative for physical gold.
The scheme has been announced by the Union government so that the demand for physical gold is reduced by shifting a part of the investment into gold bonds.
Post Master General of Chennai City Region Merwin Alexander told Express that once the scheme is inaugurated on Thursday the 50 post offices in Chenai City region would be accepting the applications from Friday.
He said that 20 head post offices and 30 major post offices in Chennai city Region has been identified which will be taking in the applications under Sovereign Gold Bond scheme.
Interestingly, the bond will be issued to the public through e-mail or a print-out from post office and this too after 15 days.
To a query on whether the bonds could be misused, Alexander said that secondary evidence as well as information would be checked.
The Reserve Bank of India, in consultation with Government of India, has decided to issue Sovereign Gold Bonds. “We are only the outlets. We will get in the information and pass it to RBI who will issue the bonds which we have to sell it to public,” said Alexander.
The borrowing through issuance of the Bond will form part of market borrowing programme of the Union government. It may be recalled that the Union Finance Minister had announced in Union Budget 2015-16 about developing a financial asset, Sovereign Gold Bond, as an alternative to purchasing metal gold.
The Bonds will be denominated in multiples of grams of gold with a basic unit of one gram. The tenor of the Bond will be for a period of eight years with exit option from fifth year to be exercised on the interest payment dates.
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