Consider the following statements regarding Sovereign Gold Bonds (SGB) issued in India:
1. They are denominated in multiples of gram(s) of gold with a basic unit of 1 gram.
2. The tenure of the bond is 8 years with an exit option after the 5th year.
3. They are issued directly by private scheduled banks as their own corporate balance sheet liabilities.
Which of the statements given above are correct?
Answer and explanation
Correct answer: D. 1 and 2 only
- Step 1: SGBs are denominated in grams of gold with an 8-year tenor and exit after year 5. Statements 1 and 2 are correct.
- Step 2: SGBs are issued by the Reserve Bank of India on behalf of the Government of India, not as liabilities of private banks.
Answer
1 and 2 only.
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