Sovereign Gold Bond Scheme 2023-24: Subscription starts from June 19; Check price, interest rate, and other key details

Sovereign Gold Bond Scheme 2023-24: Subscription starts from June 19; Check price, interest rate, and other key details

Strap: Sovereign Gold Bond scheme 2023-24 comes with a maturity period of 8 years. The government currently offers a discount of Rs 50 per gram of gold to buyers making payments online and an annual interest rate of 2.5 per cent interest.

The new tranche of the Sovereign Gold Bond (SGB) scheme for financial year 2023-24 will open for subscription only for five days starting next week. The Sovereign Gold Bonds 2023-24 (Series-I) will be opened for subscription from June 19 to June 23, 2023, according to the Finance Ministry.  

The settlement day is June 27 and the issue price of the Bond during the subscription period has been fixed at Rs 5,926 per gram, the official release of the ministry said.

Discount on Sovereign Gold Bonds

The Finance Ministry said that a discount of Rs 50 per gram from the issue price will be offered. However, this offer is only available only for those investors who would apply online. After the discount, the issue price for Sovereign Gold Bonds will be Rs 5876 per gram.

“The Government of India in consultation with the Reserve Bank of India has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 5,876 per gram of gold,” the release said.

How to buy Sovereign Gold Bonds?

The Sovereign Gold Bond can be bought at the scheduled commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), Post offices, and recognised stock exchanges.

Who can buy Sovereign Gold Bonds?   

As per the RBI guidelines, any resident of India can invest in sovereign gold bonds. In the event that an investor changes the residential status after purchasing the bond, he or she can still have the bond until early redemption or maturity.

Investment limit in SBGs and interest rate

One can invest in sovereign gold bonds in denominations of one gram of gold and can purchase multiple bonds. The minimum limit of investment is one gram, while the maximum is up to 4kg for an individual and Hindu Undivided Family (HUF). On the other hand, trusts, institutions, and organisations can purchase up to 20 kg of SBGs per fiscal year.

Currently, the government offers an annual interest rate of 2.5 per cent on the SBGs.

Criteria for early redemption

Though the maturity period for SBGs is eight years, the investors can exit after five years from the date of issue. However, holding the bond until maturity can help the investor avail of tax benefits. If the investor sells it before the lock-in period, tax will be applied to the period of holding the bond.