Relevance:
For the first-time, Reserve Bank of India (RBI) will issue Sovereign Green Bonds (SGrBs) worth ₹16,000 crores, in two tranches of ₹8,000 crores each in the current financial year. Also will issue 5-year and 10-year green bonds of ₹4,000 crores each in current financial year.
Green Bonds:
- Issued by – Any sovereign entity, inter-governmental groups or alliances and corporates
- Aim – Proceeds of bonds are utilised for environmentally sustainable projects.
- Announced in Union Budget 2022-23.
- Framework issued by Ministry of Finance.
- Features –
- Issued through Uniform Price Auction and 5% will be reserved for retail investors.
- Eligible for Repo and Statutory Liquidity Ratio (SLR) purpose.
- Eligible for trading in the secondary market.
- Designated as specified securities for investment in Government Securities by non-residents.
- Eligible projects under SGrBs framework – Projects of renewable energy, energy efficiency, clean transportation, climate change adaptation, sustainable water and waste management, pollution prevention and control, green buildings, and biodiversity conservation.
- Significance –
- To deal with threats of climate change and related challenges.
- Influence business strategy by offering investors a platform to engage in good practices.
- Will help India in tapping requisite finance for deployment in public sector projects aimed at reducing carbon intensity of economy.
What is/are the purpose/purposes of Government’s Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? (2016)
- To bring the idle gold lying with Indian households into the economy
- To promote FDI in the gold and jewellery sector
- 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
Reference: Indian Express
