The 2020-21 Sovereign Gold Bond Scheme (the eight version) will open for subscription starting Monday (Nov 9). The scheme, issued by the Reserve Bank of India (RBI), will be open until November 13.
The issue price of the Sovereign Gold Bond has been set at Rs 5,177 per gram of gold, the RBI said in a statement on Friday.
In addition, he said that the government has decided to offer a discount of Rs 50 per gram to investors applying online and that the application payment is done through digital mode. For such investors, the issue price will be Rs 5,127 per gram of gold, the central bank said.
The eighth section of the plan comes just before the Dhanteras; yellow metal has always been an integral part of the festival. People buy gold in Dhanteras as a brand to bring prosperity to homes.
Jewelers are betting on recovery and are optimistic that a rebound in the economy (after Covid-19 induces the lockdown) and suppressed demand will help drive sales in Dhanteras and the industry is likely to make up to 70 % of last year’s business.
Gold prices have remained in the range of Rs 52,000 per 10 grams in the country.
Gold sovereign bonds, for their part, are denominated in multiples of grams; the regime will be for eight years with an exit option from the fifth year to be exercised on the interest payment dates.
The sale of the bonds is restricted to resident individuals, trusts, universities and charities.
The government has set limits for the gold sovereign bond scheme: the minimum investment allowed will be 1 gram of gold and the maximum subscription limit will be 4 kg for individuals and 20 kg for trusts and similar entities per fiscal (April- March).
The gold bond will be sold through banks (except small financial banks and payment banks), Stock Holding Corporation of India (SHCIL), designated post offices and recognized stock exchanges (NSE and BSE).
The Gold Sovereign Bonds scheme was launched in November 2015 with the aim of reducing the demand for physical gold and shifting a part of the domestic savings, which is used to purchase gold, into financial savings.
Gold bonds offer an annual interest rate of 2.50% to investors.
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