The government, which opened its second tranche of sovereign gold bond scheme between January 18 and 22, has received subscriptions for 2,790 kg of gold worth Rs 726 crore.
As many as 316,000 applications came in, a finance ministry statement said. The government is likely to bring in a third tranche before the end of the financial year.
“Second tranche of gold bonds..outcome significantly better than first tranche…scheme picking up,” tweeted Shaktikanta Das, secretary, department of economic affairs. The bonds would be allotted on February 8.
The government has already launched a co-ordinated media campaign to create awareness for its gold schemes. The gold bonds would be issued in denominations of 5, 10, 50 and 100 for a term of 5-7 years. The rate of interest would depend on the value of the metal at the time of investment.
The gold schemes, which include the gold monetisation scheme and introduction of the gold coin besides the sovereign gold bond, were launched by Prime Minister Narendra Modi on November 5 last year with a view to wean away investors from physical gold.
This is part of the government’s overall plans to not only dig deep into the household stock of gold to channelise idle gold for productive use but also reduce imports of the metal.
Every year, India’s gold imports stand at an average 1,000 tonnes, which strains the fiscal deficit by impacting the country’s foreign exchange reserves.