Daily : August 1, 2017

Cabinet approval for revision of guidelines of Sovereign Gold Bonds Scheme

Cabinet approval for revision of guidelines of Sovereign Gold Bonds Scheme

Question:- Under the Sovereign Gold Bonds (SGB) Scheme , what is the increased limit for investment for individuals?
(a) 4 kg
(b) 2 Kg
(c) 3 Kg
(d) 500 gram
Answer:- (a)
Related facts:-

  • On July 26, 2017, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi provided approval for revision of guidelines of Sovereign Gold Bonds (SGB) Scheme with a view to achieve its intended objectives.
  • Accordingly, specific changes have been made in the attributes of the scheme to make it more attractive, mobilise finances as per the target and reduce the economic strains caused by imports of gold and reduce the Current Account Deficit (CAD).
  • Flexibility has been given to Ministry of Finance to design and introduce variants of SGBs with different interest rates and risk protection / pay-offs that would offer investment alternatives to different category of investors.
  • Ministry of Finance (the issuer) has been delegated this power to amend / add to the features of the Scheme with approval of the Finance Minister to reduce the time lag between finalizing the attributes of a particular tranche and its notification.
  • The investment limit per fiscal year has been increased to 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.
  • The ceiling will be counted on financial year basis and will include the SGBs purchased during the trading in the secondary market.
  • The ceiling on investment will not include the holdings as collateral by Banks and Financial institutions.
  • SGBs will be available ‘on tap’. Based on the consultation with NSE, BSE, Banks and Department of Post, features of product to emulate ‘On Tap’ sale would be finalized by Ministry of Finance.
  • To improve liquidity and tradability of SGBs, appropriate market making initiatives will be devised. Market makers, could be commercial banks or any other public sector entity, such as MMTC or any other entity as decided by Gol.
  • The Government may, if so felt necessary, allow higher commission to agents.
  • Notably, Sovereign Gold Bond (SGB) Scheme was notified by the Government of India on November 05, 2015 after due approval of the Cabinet.
  • The main objective of the scheme was to develop a financial asset as an alternative to purchasing metal gold.
  • The target was to shift part of the estimated 300 tons of physical bars and coins purchased every year for Investment into ‘demat’ gold bonds.
  • The target mobilisation under the scheme at Rs. 15,000 crore in 2015-16 and at Rs.10,000 crore in 2016-17. The amount so far credited in Government account is Rs. 4,769 crore.
  • In view of less than expected response of the investors to the scheme, it was felt necessary to make changes in this scheme to make it a success.

Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=169103

Cabinet apprised of the Joint Declaration of Intent between India and Germany

Cabinet apprised of the Joint Declaration of Intent between India and Germany

Question:-Under the Joint Declaration of Intent between India and Germany, Department of Science & Technology and Federal Ministry of Education and Research will jointly support the Indo German-Centre for Sustainability for a period of …
(a) 5 years
(b) 10 years
(c) 3 years
(d) 2 years
Ans: (a)
Related facts:-

  • On July 26, 2017, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi was apprised of the Joint Declaration of Intent (JDI) between Department of Science & Technology, India and the Federal Ministry of Education and Research (BMBF), Germany on Indo German-Centre for Sustainability (IGCS).
  • The JDI was concluded on 30th May, 2017 in Germany during the fourth Inter-Governmental Consultations (IGC) between India and Germany between Prime Minister of India and the German Federal Chancellor in Berlin.
  • The objective of the JDI on IGCS is to promote cooperation between German and Indian scientists on fundamental and applied scientific research.
  • It includes areas such as policy support, teaching, training and dissemination of information in the area of sustainable development and climate change through inter-disciplinary/trans-disciplinary research.
  • The IGCS will nurture future collaboration by widening the network with other Universities, Institutes and industries both in India and Germany.
  • On the Indian side, Indian Institute of Technology (IIT), Madras will act as the host institution for IGCS.
  • Department of Science & Technologyand Federal Ministry of Education and Researchwill jointly support the IGCS for a period of five years starting from January 2018.

Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=169105

Cabinet apprised of the MoU between India and Palestine

Cabinet apprised of the MoU between India and Palestine

Question:-Mahmoud Abbas is the president of …
(a) Palestine
(b) Turkey
(c) Lebnon
(d) Syria
Answer:- (a)
Related facts:-

  • On July 26, 2017, the Union Cabinet chaired by the Prime Minister Narendra Modi was apprised of the Memorandum of Understanding signed between India and Palestine on cooperation in the field of youth affairs and sports.
  • The MoU will help in promoting exchange of ideas, values and culture amongst all youth irrespective of their caste, religion and gender as well as development of sports in the two countries.
  • In turn, it will help in consolidating friendly relations between the two countries.

Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=169107

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