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Daily Current Affairs – 2020

Topic: For Prelims and Mains

Social Impact Bond

Why in News?

Pimpri Chinchwad Municipal Corporation (PCMC) in Pune district of Maharashtra is going to issue India’s first Social Impact Bond / Social Impact Bond (SIB).

What is Bond?

  • Bonds are a means of raising money for the company and the government.
  • Money raised from bonds comes under the category of debt.
  • The company periodically raises money from bonds to expand its business.
  • The government also takes loans to bridge the income and expenditure gap. Government takes this loan through bonds.
  • The bonds that the government issues are called government bonds.

What are Social Impact Bonds?

  • Social Impact Bonds are bonds in which a contract is made with a public sector or operating authority.
  • Social Impact Bonds pay for better social outcomes in certain areas and share the savings earned from it to investors.
  • The payment and return / dividend of investment in a social impact bond depends on the attainment of predetermined social outcomes.
  • Social impact bonds are issued for a fixed period but do not provide dividends at a fixed rate.
  • Social impact bonds are not affected by reinvestment risk, interest rate risk or market risk like other traditional bonds.

Facts for Prelims


  • This is a special kind of hackathon where students and teachers from schools and colleges, design experts, toy experts and start-ups will get together to crowd source ideas for developing toys and games that are based on Indian culture and ethos, local folklore and heroes, and Indian value systems.
  • It is an inter-ministerial initiative.
  • The participating agencies are the Ministry of Education, the Ministry of Women & Child Development, the Ministry of Textiles, the Ministry of Information & Broadcasting, DPIIT, Ministry of MSME, Innovation Cell (Education Ministry) and the AICTE.



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