Banking Awareness for Upcoming Exams Set 12 (Sovereign Gold Bond)

Suraj

This set contains banking awareness questions for various upcoming exams like SBI PO, IBPS PO, Clerk and insurance exams. This set contains questions from the topic: Sovereign Gold Bond(SGB)

  1. What is the minimum denomination for which Sovereign Gold Bond(SGB) is issued?
    A) 1 gram
    B) 2 gram
    C) 3 gram
    D) 4 gram
    View Answer
    Option A
    Explanation    : Minimum is 1 gram (The minimum subscription limit has been reduced from 2 gram to 1 gram with the view to enlarge the subscriber base;)
  2. What is the maximum denomination for which Sovereign Gold Bond is issued in case of joint account?
    A) 1 kg
    B) 2 kg
    C) 4 kg
    D) No limit in joint account
    View Answer
    Option C
    Explanation    : Maximum linit in SGB is 500 gms. Irrespective of single or joint account.
  3. What is the interest rate in Sovereign Gold Bond (SGB)?
    A) 2.50%
    B) 2.75%
    C) 3.00%
    D) 3.25%
    View Answer
    Option A
    Explanation    : The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
  4. Which of the following agency cannot sell Sovereign Gold Bond (SGB)?
    A) Public Sector Banks
    B) SHCIL offices
    C) Post Offices
    D) Regional Rural Banks
    View Answer
    Option D
    Explanation    : Bonds are sold through scheduled commercial banks (excluding RRBs), SHCIL offices and designated Post Offices either directly or through their agents.
  5. What is the tenor of bonds issued under Sovereign Gold Bond (SGB)?
    A) 5 years
    B) 3 years
    C) 8 years
    D) 10 years
    View Answer
    Option C
    Explanation    : 8 years
  6. What is the minimum numbers of year after which premature redemption is allowed under Sovereign Gold Bond (SGB) scheme?
    A) 2 years
    B) 3 years
    C) 5 years
    D) No such limit
    View Answer
    Option C
    Explanation    : Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates.
  7. What is the maximum limit of cash payment allowed under Sovereign Gold Bond (SGB) scheme?
    A) Rs 15,000
    B) Rs 20,000
    C) Rs 25,000
    D) Rs 30,000
    View Answer
    Option B
    Explanation    : Payment can be made through cash (upto Rs. 20000)/cheques/demand draft/electronic fund transfer.
  8. What is the maximum limit for banks to purchase Sovereign Gold Bond (SGB)?
    A) 5 kg
    B) 10 kg
    C) 15 kg
    D) No limit
    View Answer
    Option D
    Explanation    : There is no limit for Banks, as it will qualify for SLR.
  9. Identify the false statement.
    A) Sovereign Gold Bond (SGB) is issued by Reserve Bank on behalf of Government of India.
    B) SGB is free from issues like making charges and purity in the case of gold in jewellery form.
    C) Issuance and redemption price of Bond is fixed on the basis of the price of gold of 998 purity
    D) Sovereign Gold Bond (SGB) can be transferred/gifted to someone.
    View Answer
    Option C
    Explanation    : Price of bond will be fixed in Indian Rupees on the basis of price for gold of 999 purity published by the India Bullion and Jewellers’ Association Ltd. (IBJA).
  10. Which of the following statement is true?
    A) Minors cannot invest in SGB.
    B) Joint Holding is not allowed under SGB.
    C) SGB can be used as collateral for loans from banks
    D) TDS is applicable on the bond
    View Answer
    Option C
    Explanation    : Only C is true rest all are false. Correct statements
    A) Minors can invest under SGB. The application on behalf of the minor has to be made by his/her guardian.
    B) Joint Holding is allowed under SGB
    D) TDS is not applicable on SGB.

 

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17 Thoughts to “Banking Awareness for Upcoming Exams Set 12 (Sovereign Gold Bond)”

  1. ALKA
    March 1, 2017 at 9:39 am

    ty mam;))

  2. Trisha
    May 18, 2017 at 7:55 pm

    @surajskt:disqus please explain in q.2, minimum denomination is asked, while in answer, max is given.

    1. Suraj
      May 18, 2017 at 8:00 pm

      typing mistake,, maximum is asked in 2nd,, again sorry for the inconvenience :))

      1. Trisha
        May 18, 2017 at 8:02 pm

        thanks

  3. Sachin Shukla
    May 31, 2017 at 3:54 pm

    ty…

  4. prateek
    May 31, 2017 at 4:23 pm

    Interest rate of SGB is 2.5%

    1. Suraj
      May 31, 2017 at 4:29 pm

      yes correct!!!!!
      This one was for the old set/.. Now edited

      1. yo
        May 31, 2017 at 6:35 pm

        @Suraj Sir any mock available for this of updated data for the same topic on sgb

        1. Suraj
          May 31, 2017 at 6:37 pm

          only interest rate is changed rest all data is same.. that too now edited,, u can go through this set

          1. yo
            May 31, 2017 at 6:50 pm

            Thank you sir 😉

    2. yo
      May 31, 2017 at 6:36 pm

      What are the other changes in sgb apart from this?

      1. prateek
        June 1, 2017 at 8:38 am

        No other change.

  5. jaga
    June 1, 2017 at 3:29 pm

    Thank u

  6. Ravi Upadhyay
    October 28, 2017 at 7:12 pm

    dhanyawaad

  7. Ambikaa :)
    November 17, 2017 at 1:02 pm

    Please rectify ques 2 @shubhra

    https://rbi.org.in/SCRIPTS/FAQView.aspx?Id=109

    1. Shubhra
      November 17, 2017 at 3:57 pm

      yes, done.. 4kg. Thankyou
      Earlier it was 500 gm .

  8. Jitu
    January 31, 2018 at 7:32 pm

    ))

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