The Reserve Bank of India is likely to issue Rs 15,000
crore worth of sovereign gold bonds for the current financial year but will
first test investor response with a
tranche of Rs 1,000 crore, a government official said on Thursday.
The bonds will be part of the Gold Bond Scheme, approved
along with a Gold Monetisation Scheme by the Union cabinet on Wednesday.
The former scheme will have an annual cap of 500g per
person and such bonds would be issued for five to seven years. These will be
issued in two, five and 10g of gold or other denominations.
The official, who wished to not be named, said the final
contours were being discussed with RBI.
The government plans to borrow Rs 6 lakh crore in this
financial year, Rs 3.6 lakh crore in the first half. While the overall target
might remain unchanged, the issue of other government securities might be
adjusted by Rs 15,000 crore to make room for the gold bonds.
The official added the government was gearing up to
launch the gold monetisation scheme around Diwali, with an interest rate of
2.5-3 per cent on the deposits. The interest rate on the gold bonds was
expected to be two to three per cent.
“We”ll review the (two schemes) after a year, based on
the response,” the official said. The schemes would be notified within two
months.