The
Central government’s much-publicised Sovereign Gold Bonds (SGB) scheme is yet
to gain traction in the State. Prime Minister Narendra Modi had formally
launched the issue of applications for the scheme on November 5, and it will be
available till November 20.
Applications
for the bond are accepted at scheduled commercial banks and designated post
offices, while the bonds will be serviced by the Reserve Bank of India (RBI).
No
security issues
A
major advantage of the scheme is that there are no security issues, and one
does not have to own a locker in banks to deposit gold. More importantly, the
scheme helps in converting bonds into cash whenever the customer needs it, and
that helps him save on manufacturing charges.
However,
the response from people to the scheme has not been encouraging, then to top it
all, post offices have so far managed to issue 35-odd applications. While
majority of requests are from Vijayawada, there has been no issue of
applications in Kurnool district.
“It
caught up just a couple of days ago, and we expect better response in the next
few days, as festivals are almost over,” a senior Postal Department official
said.
“Such
schemes generally becomes popular among high income groups and above middle
income groups, as they look at it as an investment option. The scheme is an
alternative for all those who wish to invest in gold. The middle income groups
buy gold for use and do not see at as an investment option,” a bank officer
said.
While
most enquiries are from Vijayawada, there has been no issue of applications in
Kurnool district.
Source
: http://www.thehindu.com/
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