SMALL INVESTORS FORUM

Understanding the Sovereign Gold Bond Scheme Sovereign Gold Bonds will be denominated in the multiples of a gram of gold with the minimum unit of 1 gram. The interest for the gold bonds will be 2.50% per annum which is payable semi-annually on the nominal value. The tenure of the bond will be for a period of 8 years with an exit option available in the 5th, 6th and 7th year on the dates of interest payment. The maximum limit of gold which can be subscribed by an individual is 4 kg for, 4 kg for a Hindu-Undivided Family and 20 kg for trusts and other similar entities. If the gold bonds are co-owned, the limit of investment will be 4kg which will be applied to the first applicant only. The gold bonds will be issued as stocks under the Government Security Act, 2006. The investors will also be given a Holding Certificate for the same. Gold in India is considered auspicious and its demand does not stop at its market value. The precious metal is bought on auspicious occasions as an investmen

  What is Sovereign Gold Bond (SGB)? Who is the issuer? SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India. 2. Why should I buy SGB rather than physical gold? What are the benefits? The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc. 3. Are there any risks in in

 *Banks to levy charges on transactions from November 1, 2020:* Customers in some banks will now have to start paying fees for deposit and withdrawal of money. As per reports, Bank of Baroda will start charging its customers for transactions beyond the prescribed limits from November 1. Names of other banks like Bank of India, PNB, Axis Bank and Central Bank are also emerging in reports, but they are yet to take a final call on the matter. As per reports, some of these transaction charges will kick in from November 1. It is being said that withdrawals three times in a month will be free but after that a withdrawal transaction charge will be levied at a flat fee of Rs 150. Similarly, deposits three times in a month will be free but thereafter a charge of Rs 40 will be levied on each transaction. For CC, present and overdraft accounts:  • Day deposit up to one lakh – free • If there’s a couple of lakh – one rupee cost on minimal one thousand rupees (minimal 50 rupees and most 20 thousand

Customers in some banks will now have to start paying fees for deposit and withdrawal of money. As per reports, Bank of Baroda will start charging its customers for transactions beyond the prescribed limits from November 1. Names of other banks like Bank of India, PNB, Axis Bank and Central Bank are also emerging in reports, but they are yet to take a final call on the matter. As per reports, some of these transaction charges will kick in from November 1. It is being said that withdrawals three times in a month will be free but after that a withdrawal transaction charge will be levied at a flat fee of Rs 150. Similarly, deposits three times in a month will be free but thereafter a charge of Rs 40 will be levied on each transaction. For CC, present and overdraft accounts Day deposit up to one lakh – free If there’s a couple of lakh – one rupee cost on minimal one thousand rupees (minimal 50 rupees and most 20 thousand rupees) Withdrawing money thrice in a month – No cost From 4th time –

 *Waiver of interest-on-interest scheme to be implemented by 5 November* The Reserve Bank has asked all lending institutions, including non-banking financial companies, to implement the waiver of interest on interest for loans up to Rs 2 crore for the six months moratorium period beginning March 1, 2020.  On October 23, the government had announced the scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts, writes The Economic Times. The scheme mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020 to August 31, 2020 by respective lending institutions. The government had asked the lending institutions to complete the exercise of crediting the amount in the accounts of borrowers by November 5.  "All lending institutions are advised to be guided by the provisions