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Sovereign Gold Bond Scheme to open on Monday; check out interest rate, discounts

The central bank said the government has also decided to offer a discount of Rs 50 per gram on the nominal value to investors applying online

twitter-logoBusinessToday.In | June 6, 2020 | Updated 20:01 IST
Sovereign Gold Bond Scheme to open on Monday; check out interest rate, discounts
Sovereign Gold Bonds 2020-21 will be issued by RBI on behalf of the central government

The third instalment of the Sovereign Gold Bond (SGB) Scheme will be open for five days beginning Monday. SGB 2020-21 Series III will be open for subscription between June 8 and June 12. The issue price has been fixed at Rs 4,677 per gramme of gold. "The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. June 03 - June 05, 2020 works out to Rs 4,677 per gramme of gold," the Reserve Bank of India (RBI) said.

The central bank further said the government has also decided to offer a discount of Rs 50 per gram on the nominal value to investors applying online, and making the payment against application through digital mode.

Sovereign Gold Bonds 2020-21 will be issued by RBI on behalf of the central government. The gold bonds will only be sold to resident individuals, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.

The minimum permissible investment will be 1 gramme of gold, and the maximum limit of subscription shall be 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal (April-March). The gold bonds will be sold through banks, except small finance banks and payment banks, and Stock Holding Corporation of India (SHCIL).

Meanwhile, the scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings, used for purchase of gold, into financial savings.

Also read: Income tax return filing: ITR form 1 and 4 for AY2020-21 released; check details

Also read: SBI Chairman Rajnish Kumar jokes on pay cut: 'Road pe rehna padega'

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