You can buy this bond for as little as one gram. An individual or HUF can buy a maximum of four kg gold bonds.
New Delhi : The central government has decided to issue gold bonds in two phases in the financial year 2023-24. The first phase of this subscription phase will run from June 19 to 23. In the second phase, gold bonds can be purchased from September 11 to 15. "These gold bonds will be sold through commercial banks, Stock Holding Corporation of India Limited, Clearing Corporation of India Limited, post offices and stock exchanges," said a statement from the Reserve Bank of India (RBI). Investors will get interest at the rate of 2.5 percent on this bond, it is reported.
The price of SGB will be determined on the basis of a simple average of 999 pure gold published by the India Bullion and Jewelers Association Limited for the three working days of the previous week. But if you invest in these bonds online, you will get a discount of Rs 50 per gram on the issue price. According to the apex bank, these bonds are issued by the Reserve Bank on behalf of the central government. Apart from individuals, HUFs, trusts, universities and charitable institutions can buy gold bonds. A maximum of Rs 20000 cash can be used to purchase SGB. Bonds can also be purchased through demand draft, check or electronic banking.
You can buy this bond for as little as one gram. An individual or HUF can buy a maximum of four kg gold bonds. However, up to 20 kg bonds can be purchased in a financial year in case of various institutions including trusts. Investment tenure in this bond is eight years. If you want to withdraw before the expiry date, it will be possible after five years.
These bonds can be used as collateral for loans. The loan-to-value ratio has been set by the Reserve Bank at par with ordinary gold loans. In this regard, the central bank further said, "According to the Income Tax Act, 1961, an individual is exempted from capital gains tax on SGB redemption."
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