Sovereign Gold Bond Scheme 2nd tranche opens today: How to apply, eligibility and all you need to know

New Delhi: The Reserve Bank of India (RBI) has opened the second tranche of Sovereign Gold Bond Scheme 2020-21 for subscription on Monday (May 11)

The Series II of Sovereign Gold Bond Scheme for FY21 will close for subscription on May 15. The Central Bank has fixed the issue price under this scheme at Rs 4,590 per gram of gold.

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.

Online price for buying the Sovereign Gold Bond Scheme?

The issue price of the Gold Bonds will be Rs 50 per gram less for those who subscribe online and pay through digital mode.