The first installment of Sovereign Gold Bond (Series I)) has started selling and will run till May 21. This year the government will release some 6 installments of sovereign gold bonds. The Sovereign Gold Bond Scheme was launched by the government in November 2015.
The government has once again given those willing to invest in gold the opportunity to buy gold bonds. The first installment of the Sovereign Gold Bond Scheme has been started by the government for the financial year 2021-2022. In such a situation, the customers of State Bank of India (SBI) have also been given the opportunity to invest in this bond.
Opportunity to buy gold cheaply – Under the scheme you can buy gold at Rs 4,777 per gram. If you buy 10 grams of gold, then it costs Rs 47,770 and if the gold bond is purchased online, then the government will give an additional rebate of Rs 50 per gram to the investors.
In this, payment for applications has to be made through ‘digital mode’. On buying gold online, investors will have to pay Rs 4,727 per gram of gold. In this case, you will get 10 grams of gold for Rs 47,270.
Scheme in November 2015
The first installment of Sovereign Gold Bond (Series I)) has started selling and will run till May 21. This year the government will release some 6 installments of sovereign gold bonds. The Sovereign Gold Bond Scheme was launched by the government in November 2015. Under this scheme, investment in installments has been started on behalf of the Reserve Bank of India (RBI) in consultation with the Government of India. RBI notifies the terms and conditions of the scheme from time to time.
What are its features
It has been issued by the Reserve Bank of India on behalf of the Government of India. This bond will be expressed in multiples in grams of gold weighing on the basis of 1 gram unit. The tenure of the bond will be 8 years and in the 5th, 6th and 7th year the withdrawal from the scheme can be used on the interest payment dates. The minimum permissible investment limit is 1 gram of gold.
The maximum investment limit will be 4 kg for a single person, 4 kg for Hindu Undivided Family and 20 kg for trusts and similar institutions in every financial year (April-March) notified by the Government from time to time. An announcement in this regard will be made on behalf of the bank. The annual limit will include bonds initially issued by the government and purchased from the secondary market and held under investment at various stages.
Price in Indian rupees
Based on the simple average price of 999 purity gold closing price published by the Bullion and Jewelers Association Limited (IBJA) for the last 3 business days of the week.
Bond will be paid in cash (up to a maximum of Rs. 20,000 / -) or through demand draft or check or electronic banking.
The Gold Bond will be issued as Government of India stock under the Government Securities Act, 2006. Holding certificate will be issued to investors for this. Bond can be converted into demat.
How will you get interest
The redemption price will be in Indian rupees based on the simple average price of 999 purity gold closing price published by IBJA for the last 3 business days of the week. All branches of SBI are authorized to accept these investments. Investors will be given interest at a fixed rate of 2.50 percent per annum on nominal value, it will be payable on half-yearly basis.
Can also be used for loans
Bond can be used for loans. The value-based loan (LTV) ratio is to be equal to ordinary gold loan as instructed by the Reserve Bank from time to time. The lien on the bond will be marked by the authorized banks in the depository.