Upcoming Sovereign Gold Bond Scheme 2020-21 (Series XI) To Open On 1 Feb

The Reserve Bank of India (RBI), in a press release on Friday, informed that the Sovereign Gold Bond Scheme 2020-21 - Series XI will be open for subscription from 1 February to 5 February 2021.

The central bank further said that it has placed its issue price for the upcoming bond issue at Rs 4,912 per gram.

"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 business days of the week preceding the subscription period, i.e. January 27 - 29, 2021 works out to Rs 4,912/- (Rupees Four thousand nine hundred and twelve only) per gram of gold," RBI's press release said.

"Government of India, in consultation with the Reserve Bank of India, 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 such investors, the issue price of Gold Bond will be Rs 4,862/- (Rupees Four thousand eight hundred and sixty two only) per gram of gold," it added.

Sovereign Gold Bonds are issued in denominations of one gram or multiples thereof.

The minimum limit of subscription shall be of one gram and a maximum of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities for one fiscal year.