Sovereign Gold Bond (SGB) is the scheme which was launched by the Government of India in November 2015, under Gold Monetisation Scheme. It was launched with an objective to reduce the demand for physical gold and shift a part of domestic savings used for the purchase of gold into financial savings.
Under the scheme, the issues are made open for subscription in tranches by the Reserve Bank of India on behalf of the Government of India. The investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity.
The Reserve Bank of India notifies the terms and conditions for the scheme from time to time. The rate of Sovereign Gold Bonds is declared by RBI before every new tranche by issuing a press release.
SGB Scheme 2022-23 Series II Opens for 5 Days
The Sovereign Gold Scheme 2022-23 Series II has been opened today, August 22, 2022 for subscription for a five days period that will end on August 26, 2022 and the issue price for that has been fixed at Rs. 5197 per gram of Gold.
Discount & Tenure
The Government of India, in association with the Reserve Bank of India has decided to offer a discount of Rs. 50 gram to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be Rs. 5059/gram.
The tenure of the bond will be 8 years and if you want to redeem even before the time, it also carries an option of premature redemption after five years. The option can be availed on the date when interest is payable. A holding certificate will be issued as a proof of your investment in the bonds.
Minimum & Maximum Limit
The minimum permissible investment is 1 gram of gold and the maximum limit of subscription shall be 4 kg for individuals, 4 kg for Hindu Undivided Family (HUFs) and 20 kg for trusts and similar entities per fiscal year (March/April), as notified by the Government periodically.
How will the SGB Scheme be Sold?
The bond will be sold through scheduled commercial banks except Small Finance Banks and Payment Banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices and recognised stock exchanges such as National Stock Exchange of India Limited and Bombay Stock Exchange Limited.
The bond will be restricted for sale to resident individuals, HUFs, Trusts, Universities and charitable institutions. Non-Resident Indians (NRIs) cannot invest in Sovereign Gold Bond schemes.
Important Documents & Interest Rate
KYC documents such as voter ID, Aadhaar Card/ PAN or TAN/Passport will be required. Every application must be accompanied by the PAN Number issue by the Income Tax Department to Individuals and other entities.
An investor can make payment for the gold bonds through cash (up to a maximum of Rs. 20,000) or demand draft or cheque or electronic banking. They will be compensated at a fixed rate of 2.5% per annum payable semi-annually on the nominal value.
Don't miss out on this golden opportunity! SOVEREIGN GOLD BONDS SCHEME 2022-23 SERIES – II opens from 22 Aug to 26 Aug.
Know more: https://t.co/toePwigMVj
#SovereignGoldBond #AzadiKaAmritMahotsavWithSBI #SBI pic.twitter.com/t0HLSV2eqg
— State Bank of India (@TheOfficialSBI) August 20, 2022
