Sovereign Gold Bond Scheme opens on Feb 28: Issue price, how to subscribe, and all you need to know

New Delhi: The Reserve Bank of India will open the Sovereign Gold Bond (SGB) Scheme 2021-22 - Series X for subscriptions from February 28, 2022, to March 4, 2022, according to a press release. 

For the unversed, Sovereign Gold Bond was launched in November 2015 under the Gold Monetisation Scheme by the Indian government. As part of the scheme, the RBI open issues for subscription to sovereign gold bonds in tranches.  

Sovereign Gold Bond Scheme Series X Price Subscription 

The RBI has fixed the price of the Sovereign Gold Bond Scheme Series X at Rs 5,109 per gram. The price is higher than previous schemes because of the rising gold prices in the past few days amid the ongoing Russia-Ukraine war. 

The nominal value of the sovereign gold bond is based on the average closing price of gold of 999 purity of the last three business days preceding the subscription period. The closing price is published by the India Bullion and Jewellers Association Ltd. 

How to subscribe to Sovereign Gold Bond Scheme?

Sovereign Gold Bond Scheme investors should note that SGBs are basically like substitutes to holding physical gold. Investors can put their money in sovereign gold bond schemes in cash or online. The bonds are automatically redeemed in cash on maturity. 

Discount on investing in Sovereign Gold Bond Scheme Series X 

Investors receive a discount of Rs 50 per gram less than the nominal value for applying online and making the payment against the application via digital mode. For the SGB series X Scheme, the issue price will stand at Rs 5,059, per gram of gold.

Sovereign Gold Bond Scheme Series X Interest rate

Investments in Sovereign Gold Bond schemes provide a 2.50 per cent (fixed rate) per annum on the amount. The interest is credited semi-annually directly in the bank account of the investor. Also Read: Wordle answer for today, February 27: Check puzzle 253 hints, solution

Sovereign Gold Bond Scheme Series X Eligibility 

Indian residents defined under Foreign Exchange Management Act, 1999 are eligible to invest in Sovereign Gold Bond Scheme Series X. Individuals, HUFs, trusts, universities and charitable institutions are allowed to invest in the scheme. Also Read: Elon Musk-owned Starlink offers internet services in Ukraine, Twitterati is all praises for billionaire