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The second series of Sovereign Gold Bond Scheme for 2022-23 will be open for subscription on August 22. The application for this gold bonds will continue till August 26, 2022. RBI on Friday announced the issue price of the scheme at 5,197 per gram of gold. However, if the application and payment for the scheme are made online, then RBI is offering 50 per gram discount.

In its statement, RBI said, the nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three working days of the week preceding the subscription period, i.e. August 17, August 18, and August 19, 2022, works out to 5,197 per gram of gold.

RBI issues these sovereign gold bonds on behalf of the Indian government.

Discount on Sovereign Gold Bond Scheme for 2022-23 series II.

The central bank added, that the government, in consultation with RBI, has decided to offer a discount of 50 per gram less than the nominal value to those investors applying online, and the payment against the application is made through digital mode.

For investors opting for digital mode, the issue price of the gold bond will be 5,147 per gram lower than the nominal value.

Features of Sovereign Gold Bond Scheme for 2022-23 series II

This gold bond scheme is available to resident individuals, HUFs, Trusts, Universities, and Charitable Institutions.

The tenure of the scheme is eight years with an option of premature redemption after the 5th year to be exercised on the date on which interest is payable.

The minimum permissible investment will be One gram of gold. While the maximum limit of subscription 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.

An investor can make payment for the gold bonds through cash (up to a maximum of 20,000) or demand draft or cheque or electronic banking.

The investors will be compensated at a fixed rate of 2.50% per annum payable semi-annually on the nominal value.

These gold bonds are also eligible for trading. Further, they can be used as collateral for loans.

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