What exactly is the Sovereign Gold Bond Scheme? Price, Discount, and Limit

The Sovereign Gold Bond (SGB) scheme was started by the Government of India in November 2015 as part of the Value Of the asset Scheme. It was started up with the goal of reducing requirements for physical gold and redirecting a percentage of domestic savings previously used to buy gold into financial savings.

The Reserve Bank of India opens the issues for subscription in tranches on behalf of the Indian Government under the scheme. The issue price must be paid in cash by the investors, and the bonds must be repaid in cash at maturity.

The Reserve Bank of India announces the scheme’s policies and terms on a regular basis. The rate of Sovereign Gold Bonds is announced by the RBI in advance of each new tranche via a press release.

Important Document and Interest Rate

Voter ID, Aadhaar Card/PAN or TAN/Passport, and other KYC files will be required. Every application must be preceded by the PAN Number issued to individual people and other entities by the Department of Income Tax.

An investor can buy gold bonds with cash (up to a limit of Rs. 20,000), demand draught, cheque, or digital payment. They will be compensated at a fixed annual rate of 2.5% on the net value, payable semi-annually.

Minimum And Maximum Limit for Gold

The minimum allowable investment is one gramme of gold, and the maximum limit is four kilogrammes for individuals, four kilogrammes for Hindu Undivided Families (HUFs), and twenty kilogrammes for trusts and similar organisations per financial year (March/April), as informed by the government on a regular basis.

SBG Scheme

The bond will be decided to sell through planned commercial banks, with the exception of Finance bank and Payment Banks, the Stock Holding Corporation of India Limited (SHCIL), marked post offices and identified stock markets such as the National Stock Exchange (Nse) and the Bombay Stock Exchange (BSE).

The bond will only be available for purchase by residents, HUFs, Trusts, University colleges, and charitable organisations. NRIs are not permitted to invest in Sovereign Gold Bond schemes.

Discount and Tenure In Gold Investment

The Indian government in collaboration with the Indian Reserve Bank has chosen to offer an Rs. 50 gramme discount to investors who apply online and pay for the application via digital methods. The issue price of the Gold Bond will be Rs. 5059/gramme for such investors.

The bond will have an 8-year term, but if you want to redeem it sooner, there is a five-year early redemption option. The option is available on the date that interest is due. As actual evidence of your bond investment, a holding certificate will be provided.

SGB SCHEME 2022 Now Open For 5 Days- Hurry now

The Sovereign Gold Scheme 2022-23 has started for subscription on 22 August 2022 and will run for 5 days that will stop on August 26, 2022, with the face value set at Rs. 5197 per gramme of gold.