Sovereign Gold Bond (SGB) Scheme was launched by the Government of India in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by RBI in consultation with GOI. RBI notifies the terms and conditions for the scheme from time to time. The subscription for SGB will be open as per the following calendar. The rate of SGB will be declared by RBI before every new tranche by issuing a release. 

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As per RBI instructions: “Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to the investor(s)’ as the PAN number of the first/ sole applicant is mandatory.”

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http://onlinesbi.com under e-services. 

SBI recently listed out six reasons to invest in Sovereign Gold Bonds. And the bank is also offering a special discount of Rs 50 per gm on applying online.

* Sovereign Gold Bonds have assured returns of 2.50 per cent per annum that is payable half-yearly, according to SBI. 

* Sovereign Gold Bonds are secure and have no storage hassles like physical gold. 

* The Bonds have no Capital Gain Tax on redemption, as per SBI. 

* Sovereign Gold Bonds have liquidity aspect which means it can be tradable on exchanges. 

* Sovereign Gold Bonds can be used as collaterals for loans. 

* Similarly, there is no GST and making charges applied unlike in physical gold. 

 The Sovereign Gold Bonds issue period is between July 12 to July 16, 2021.  

The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram. The tenor of the Bond will be for a period of 8 years with an exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates. The minimum permissible investment will be 1 gram of gold. 

The maximum limit of subscribed shall be 4 KG for individuals, 4 Kg for HUF, and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchase from the Secondary Market.