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Investors will be able to invest in the Sovereign Gold Bond (SGB) scheme from Monday i.e. today. RBI has fixed the gold bond price at Rs 6,199 per gram. The bond sale will last for a total of five days till December 22. This will be the third series of gold bonds for the financial year 2023-24. Earlier, the second series was sold in September. The next Gold Bond series will release on February 12-16.
On Online Purchase Rs. 50 Off: According to the RBI, the price of SGB is Rs 6,199 per gram based on the normal average closing price of gold of 999 purity. Investors buying gold bonds through online or digital means will be given a discount of Rs 50 per gram. The bond price for such investors will be Rs 6,149.
Online and offline sales will be: Gold bonds have the facility to invest both offline and online. If a person wants to invest offline he has to visit the designated bank branches, fill the form and complete all the formalities. Apart from this, people who want to invest online have to apply through the website of Reserve Bank of India or other banks to buy gold bonds.
How much to invest: To invest in gold bonds you need to buy at least 1 gram of gold. At the same time, anyone can buy up to 500 grams at a time. The limit is a maximum of four kilograms for a financial year. For some organizations this limit is up to 20 kg.
Can be purchased from: RBI has authorized selected banks and post offices, Stock Holding Corporation, Clearing Corporation of India and Stock Exchanges NSC and BSC for their sale. Demat account is required to buy bonds through stock exchange.
2.5 percent interest per annum: Government gold bonds pay interest at the rate of 2.5 percent per annum. It is payable half yearly. Although the interest earned on gold bonds is taxable, the capital gain on redemption of these bonds is not taxable.
114 percent profit in the year 2017-18 category: The Reserve Bank of India has fixed the redemption price for premature withdrawal of the gold bond series issued in the year 2017-18 at Rs. 6,199 per gram has been fixed. The series was released in December 2017 and was priced at Rs 2,890 per gram at that time. If an investor investing in this sells the bond before maturity, he will get 114 percent profit.
How to apply online through bank
- Visit the RBI designated bank website and select the Gold Bond option on the homepage or in the e-services section.
- This option will open even after logging in through net banking.
- After reading the necessary terms and conditions related to the bond, the registration form will open.
- After filling it, enter the amount of gold and the name of the nominee.
- After verifying all the information, the form has to be submitted and also verified with OTP.
- After this the payment process has to be completed. After this, the bank will issue the gold bond certificate, which will also be received on email.
The demand for gold is constantly increasing: In India, gold demand rose 10 percent to 210.2 tonnes in the third quarter of the current fiscal year 2023-24. It was 191.7 tonnes in the same period a year ago. According to World Gold Council (WGC) data, India’s gold imports rose to 220 tonnes in the third quarter from 184.5 tonnes in the year-ago period.