For the new series of Sovereign Gold Bonds or SGBs that open for public subscription on Monday, the government has fixed the price at Rs 3,196 per gram.
To those investors who subscribe to the SGBs online and make the payment via the digital route, like previous issuances, this FY too a discount of Rs. 50 per gram will be offered from the issue price. "For such investors, the issue price of gold bond will be Rs 3,146 per gram of gold," the RBI statement said.
On May 30, the central bank came up with the calendar for the issuance of SGBs for the first half of FY'20. During which investors will be able to make investment in SGBs every month from June to September.
The scheme introduced in 2015 intended to mobilize household income spent on gold purchase into other financial savings such as SGBs.
Under the scheme, the bonds are denominated in units of one gram of gold and multiples thereof. Minimum investment in the bonds is one gram with a maximum limit of subscription of 500 gram per person per fiscal year (April-March). The maximum limit of subscription is 4 kg for individual and Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities per fiscal (April-March).