Sovereign Gold Bond Scheme 2021-22 series I opens today, May 17: How to apply, price, eligibility and more

New Delhi: The Sovereign Gold Bond Scheme 2021-22 series I opens for subscription on Monday (May 17, 2021), and will close on May 21, 2021 and bonds will be issued on May 25.

The issue price for Sovereign Gold Bond Scheme 2021-22 has been fixed at Rs 4,777 per gram, the Reserve Bank of India said.

The government has decided to issue the bonds in six tranches from May 2021 to September 2021. The RBI will issue the bonds on behalf of the Government of India.

"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...Works out to Rs 4,777 per gram of gold," the RBI said.

The government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

"For such investors, the issue price of gold bond will be Rs 4,727 per gram of gold," the RBI said.

Here’s all you need to know about your eligibility, how to apply for the Sovereign Gold Bond Scheme.

What is Sovereign Gold Bond Scheme?

Sovereign Gold Bond Scheme are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

How will the Sovereign Gold Bond Scheme be sold?

The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

Who can buy Sovereign Gold Bond Scheme?

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

What will be the tenor of the Sovereign Gold Bond Scheme?

The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised on the interest payment dates.

What is the investment limit of the Sovereign Gold Bond Scheme?

Minimum permissible investment will be 1 gram of gold. The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the Secondary Market.