Sovereign Gold Bond Scheme 2021-22 Opens For Subscription: Key Things To Know

The Reserve Bank issues the bonds on behalf of the government.

New Delhi:
The ninth tranche of the Sovereign Gold Bond Scheme 2021-22 opened for subscription on Monday, January 10. The five-day scheme will conclude on January 14. The date of issuance for the tranche is set as January 18.

Here’s Your 10-Point Cheatsheet To This Story:

  1. Reserve Bank of India (RBI) has kept the nominal value of the bond at Rs 4,786 per gram of gold.

  2. Those applying online or via digital mode will get an additional discount of Rs 50 per gram. “For such investors, the issue price of gold bond will be Rs 4,736 per gram of gold,” RBI has said.

  3. The issue price for Series VIII (eighth), which was open for subscription from November 29 to December 3, 2021, was Rs 4,791 per gram of gold.

  4. The Reserve Bank issues the bonds on behalf of the government.

  5. The bonds will be sold through banks Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges — NSE and BSE.

  6. The scheme was launched in November 2015 to reduce the demand for physical gold and shift a part of the domestic savings — used for the purchase of gold — into financial savings.

  7. The price of a bond is fixed in Indian rupees based on the simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers Association (IBJA) for the last three working days of the week preceding the subscription period.

  8. The bonds are denominated in multiples of gram(s) of gold with a basic unit of one gram. The tenor of the bond will be for 8 years with an exit option after the 5th year to be exercised on the next interest payment dates.

  9. The minimum permissible investment is one gram of gold. The maximum limit of subscription is 4 kg for individuals, 4 kg for HUF (Hindu Undivided Family) and 20 kg for trusts and similar entities per fiscal (April-March).

  10. The know-your-customer (KYC) norms will be the same as that for the purchase of physical gold.

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