"Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds-2018-19," a Finance Ministry statement said on Monday.
"The Sovereign Gold Bonds will be issued every month from October 2018 to February 2019."
According to the statement, bonds would earn an interest of 2.5 per cent per annum, payable every six months on the nominal value. The bond certificates would be issued on October 23.
"Price of bond will be fixed in Indian rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period," the statement said.
"The issue price of the Gold Bonds will be Rs 50 per gram less for those who subscribe online and pay through digital mode."
As per the statement, the tenure of the bond will be for a period of eight years, with an exit option from the fifth, sixth and seventh year to be exercised on the interest payment dates.
The bonds would be sold through banks, designated post offices, Stock Holding Corporation of India (SHCIL) and recognised stock exchanges -- the National Stock Exchange and the Bombay Stock Exchange.
SGBs are denominated in multiples of gram of gold with a minimum unit of 1 gram and can also be held in demat form.
The government launched the Sovereign Gold Bond Scheme in November 2015 as an alternative to purchasing metal gold and mobilise the idle gold held by households and institutions into productive use in the long run.
The scheme envisages to reduce the current account deficit by reducing the country's reliance on the import of gold to meet the domestic demand.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
