Tuesday, November 17, 2015

Not many takers for SGB scheme

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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