Sovereign Gold Bond Scheme opens today: check issue price, special discounts and more!

The Sovereign Gold Bond Scheme 2022-23 Series II will open for 5 days from 22nd to 26th August. The issue price of the Sovereign Gold Bond Scheme 2022-23 Series II is set at INR 5,197 per gram of gold.

“The nominal value of the bond…Works out to Rs 5,197,” the central bank said in a recent statement.

The Government of India, in consultation with the RBI, has decided to offer a discount of 50 rupees per gram to investors applying online. Application payments are made digitally.”For such investors, the issue price of Gold Bond will be Rs 5,059 per gram of gold,” Reserve Bank Of India says.

“For such investors, the issue price of Gold Bond will be Rs 5,147 per gram of gold,” the RBI says . The Reserve Bank of India will issues the bonds on behalf of the Centre.

The bond has a term of eight years, with termination options after the fifth year, which will be exercised on the next coupon payment date. The minimum allowed investment amount is 1 gram of gold.

The subscription limit for one fiscal year (April to March) is 4 kg for individuals, 4 kg for HUF, and 20 kg for trusts. The Know Your Customer (KYC) criteria are the same as when buying physical gold. The government bond program was introduced in November 2015. This aims to reduce demand for physical gold and reallocate some of the domestic savings used to buy gold to financial savings.


What is exactly Sovereign Gold Bond Scheme?

The Sovereign Gold Bond Scheme is a government bond in grams of gold. They take the place of holding physical gold. Investors must pay the issue price in cash and the bonds will be redeemed in cash at maturity. This bond is issued by the Reserve Bank on behalf of the Government of India.