Sovereign Gold Bond scheme opens from Oct 15; here's how you can get it
The sovereign gold bond scheme for 2018-19 will open for subscription from October 15, running up to five tranches till February, said the Reserve Bank statement, adding that the Sovereign Gold Bonds will be issued every month from October 2018 to February 2019 as per the calendar specified. Here are other key details of the scheme. Image source: Reuters
The first tranche of the scheme will be open for subscription between October 15-19, while the issuance of the bonds will be on October 23. The next tranche between November 5-19 (issue Nov 13), followed by December 24-28 (issue Jan 1); January 14-18 (Jan 22) and February 4-8 (Feb 12). For the current fiscal, the first tranche of the sovereign gold bond (SGB) and its subscription was opened on April 16. Image source: Reuters
The scheme was first launched in November 2015 to reduce the demand for physical gold and shift a part of the domestic savings, used for the purchase of gold, into financial savings. Under the scheme, the bonds are denominated in units of one gram of gold and multiples thereof. Image source: Reuters
The Bonds are eligible for conversion into demat form and can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time. The interest on gold bonds will be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). Image source: Reuters