Gold Bond Scheme
- June 6, 2020
- Posted by: admin
- Category: DPN Topics
Government announced opening up of Sovereign Gold Bonds 2020-21 (Series III) for the period June 08-12, 2020
- Gold bonds have been introduced to convert the demand for gold as a physical asset into financial savings.
- Sovereign Gold Bonds or SGBs issued by the RBI on behalf of government are priced in relation to the price of gold and offer a fixed interest rate.
- At the time of maturity, the bond owner receives the value of the bond in line with the current price of gold.
- Gold bonds are restricted for sale to resident Indian entities including individuals, HUFs, trusts, universities and charitable institutions.
- The minimum application size for this investment is equivalent to 1 gram of gold and the maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March)
- Bonds can be used as collateral for loans and are tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.