New Delhi, Feb 10 (SocialNews.XYZ) Finance Ministry on Friday said that the Sovereign Gold Bonds 2023-24 (Series IV) will be opened for subscription during February 12-16, with settlement date as February 21.
The gold bonds will be issued by the RBI at a price of Rs 6,263 per gram.
The government in consultation with the Reserve Bank of India has decided to allow a discount of Rs 50 per gram from the issue price of Sovereign Gold Bonds to investors who apply online and the payment is made through digital mode.
For such investors the issue price of Gold Bond will be Rs 6, 213 per gram of gold.
Payment for the Bonds will be through cash payment (up to a maximum of Rs 20,000/-) or demand draft or cheque or electronic banking.
The SGBs will be available through various channels, including scheduled commercial banks, Stock Holding Corporation of India (SHCIL), Clearing Corporation of India (CCIL), designated post offices, and recognised stock exchanges, such as the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Individual investors can start with a minimum investment of 1 gm and go up to a maximum of 4 kg.
The know-your-customer (KYC) norms for SGBs are the same as that for purchasing physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Permanent Account Number (PAN) issued by the income tax department is mandatory.
SGBs come with tenure of eight years with an exit option after the fifth year. SGBs are tax free if held till maturity.
SGBs also offer an annual interest of 2.50 per cent, credited semi-annually to the buyer’s bank account, with the final interest payment made at maturity along with the principal amount. Upon maturity, buyers will receive the value of gold at current market prices, and the interest income, all of which is tax-free.
SGBs can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time.
Source: IANS
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