Question
What is/are the purpose/purposes of Government's ‘Sovereign Gold Bond Scheme' and ‘Gold Monetization Scheme'?
1. To bring the idle gold lying with Indian households into the economy
2. To promote FDI in the gold and jewellery sector
3. To reduce India's dependence on gold imports
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer:
C
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Explanation:
The main purpose of the Government's 'Sovereign Gold Bond Scheme' and 'Gold Monetization Scheme' are:
To bring the idle gold lying with Indian households into the economy: The Gold Monetization Scheme aims to mobilize the idle gold held by households and institutions by providing them with an opportunity to earn interest on their gold deposits. This helps in channeling the gold into the financial system and reducing the reliance on physical gold imports.
To promote FDI in the gold and jewellery sector: The schemes do not specifically aim to promote foreign direct investment (FDI) in the gold and jewellery sector.
To reduce India's dependence on gold imports: Both schemes contribute to reducing India's dependence on gold imports. The Sovereign Gold Bond Scheme offers an alternative investment avenue for individuals who would otherwise purchase physical gold, thereby reducing the need for importing gold. The Gold Monetization Scheme aims to mobilize domestic gold reserves, reducing the need for importing gold to meet domestic demand.