Sovereign Gold Bond is opening next week, this is the issue price

The nominal value of the bond, based on the simple average closing price of gold of 999 purity, works out to Rs 6,199 per gram, RBI said in a statement. The central government, in consultation with the Reserve Bank, has also decided to give a discount of Rs 50 per gram less than the face value to investors who apply online and pay through digital mode.

The central bank said the issue price of gold bonds for investors will be Rs 6,149 per gram of gold. Gold Bond Scheme 2023-24 -Series IV is scheduled for February 12-16. Series I was open for subscription from June 19-23 this year and Series II from September 11-15. In this bond, investors get interest at the rate of 2.50 percent per year. The maximum limit of subscription will be 4 kg for individuals, 4 kg for HUF, and 20 kg for trusts and similar entities per financial year.

The Finance Ministry said the tenure of the SGB will be eight years and the premature repayment option after the fifth year will be exercised on the date on which the interest is payable. The Reserve Bank of India issues bonds on behalf of the central government. Bonds can be used as loans.

Gold can be easily purchased through KYC. The Sovereign Gold Bond Scheme was launched in November 2015 to reduce the demand for physical gold and shift a part of household savings into financial savings used for purchasing gold.