RBI Sovereign Gold Bonds

RBI Sovereign gold bonds open for subscription

The sixth and final tranche of RBI Sovereign gold bonds of this FY 2020-21 opened for subscription on 31, August 2020 and will close on September 04. The issue price has been fixed at ₹5,117 per gram of gold. Those applying online and making payment through digital mode will get a discount of ₹50 per gram. For such investors, the issue price of bond will be ₹5,067 per gram of gold.

Sovereign gold bonds are issued by the Reserve Bank of India (RBI) on behalf of the government. The sovereign gold bond scheme was launched in 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings that is used for the purchase of gold, into financial savings.

Below are some of the key features of these bonds
  • The issuance date of these bonds is 04th September, 2020
  • Bonds can be traded on stock exchanges within a fortnight of the issuance on a date, subject to liquidity.
  • The issue price of sovereign gold bonds is fixed based on recent closing price of gold as published by the India Bullion and Jewellers Association Ltd for gold of 999 purity.
  • The minimum permissible investment in gold bonds is one gram of gold.
  • The RBI had announced that the government will issue Sovereign Gold Bonds in six tranches till September. Here are the details of other tranches of gold bonds that will be issued till September:
Sr NoTrancheDate of SubscriptionDate of Issuance
12010-21 Series IApril 20-24, 2020April 28, 2020
22010-21 Series IIMay 11-15, 2020May 19, 2020
32010-21 Series IIIJune 08-12, 2020June 16, 2020
42010-21 Series IVJuly 06-10, 2020July 14, 2020
52010-21 Series VAugust 03-07, 2020August 11, 2020
62010-21 Series VIAugust 31-September 04, 2020September 08, 2020
  • Gold bonds have a maturity period of eight years but investors will have the option to exit after the fifth year.
  • Gold bonds offer an annual interest rate of 2.50% to investors. The interest on gold bonds will be added to the subscriber’s income and taxed accordingly.
  • Capital gains, if any, at maturity is tax-free. This is an exclusive benefit available on gold bonds. Physical gold or other forms of investments like gold ETF or gold mutual funds don’t qualify for this benefit.

Contact Us to get more details on this scheme.

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