The Sovereign Gold Bond Scheme 2021-22 - Series V will be available for subscription from August 09 to 13, 2021, according to a press release issued by the RBI on May 12, 2021. According to a press release issued by the Reserve Bank of India (RBI) dated 6th August 2021 "The nominal value of the bond based on the simple average closing price published by the India Bullion and Jewellers Association Limited for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. August 04, August 05 and August 06, 2021 works out to Rs 4,790/- (Rupees four thousand seven hundred and ninety only) per gram of gold."
RBI has also said in the statement that "Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 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 4,740/- (Rupees four thousand seven hundred and forty only) per gram of gold."
Eligibility, Subscription, and Pricing
- The gold bonds issued under this scheme can be purchased by a trust, a HUF, a charity organisation, a university, or an individual residing in India, in his or her position as an individual or on behalf of a minor child, or jointly.
- The lowest subscription limit for the bonds issued shall be 1 gram, and the maximum subscription limit each fiscal year shall be 4 kg for individuals, 4 kg for Hindu Undivided Families (HUFs), and 20 kg for trusts and similar entities as declared by the Government in this regard.
- In the case of a joint holding, the above limitations will only apply to the first or primary applicant.
- The yearly cap on investment will exclude holdings as collateral by banks and other financial institutions, as well as bonds purchased under multiple tranches during the government's initial issuance and those subscribed from the secondary market.
- The issue price of gold bonds shall be in Indian rupees and shall be determined by the simple average of the closing price of 999 purity gold announced by the India Bullion and Jewellers Association Limited for the last three working days of the week prior to the subscription window.
- The issue price of the gold bonds would be Rs 50 per gram less than the nominal value for those purchasers who apply online and make payment via online mode.
Sovereign Gold Bond Scheme 2021-22
The Sovereign Gold Bonds will be released in six tranches between May 2021 and September 2021, according to the schedule below:
|Sr. No.||Tranche||Date of Subscription||Date of Issuance|
|1||2021-22 Series I||May 17-21, 2021||May 25, 2021|
|2||2021-22 Series II||May 24-28, 2021||June 01, 2021|
|3||2021-22 Series III||May 31-June 04, 2021||June 08, 2021|
|4||2021-22 Series IV||July 12-16, 2021||July 20, 2021|
|5||2021-22 Series V||August 09-13, 2021||August 17, 2021|
|6||2021-22 Series VI||August 30-September 03, 2021||September 07, 2021|
The gold bonds will be granted in the form of a Stock Certificate and also the gold bonds will be available for conversion to Demat form.
Where to subscribe for gold bonds?
Scheduled Commercial Banks (excluding Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), authorised post offices, and designated stock exchanges, such as the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, will offer the bonds for a subscription. Anyone interested in purchasing gold bonds should fill out Form A and submit it to the concerned office.
The PAN number issued by the Income Tax Department must also be specified in the form by the subscriber. Know-your-customer (KYC) requirements such as Voter ID, Aadhaar card/PAN or TAN/Passport, and other KYC papers would be required if the applicant is willing to purchase online. For subscription of Sovereign Gold Bonds, the country's leading commercial bank State Bank of India (SBI) is allowing customers to purchase online. But before purchasing individuals must need to know the reasons to invest in Sovereign Gold Bonds. Regarding the same, the bank has informed today via its Twitter handle that "Planning to invest in Gold? Here are 6 golden reasons to invest in Sovereign Gold Bonds. SBI customers can invest in these bonds on http://onlinesbi.com under e-services."
- Assured returns of 2.50% p.a. payable half-yearly.
- No capital gain tax on redemption.
- Can be used as collaterals for loans.
- Secure, no storage hassles like physical gold.
- Liquidity: Tradable on exchanges
- No GST and making charges unlike in physical gold.
Planning to invest in Gold?— State Bank of India (@TheOfficialSBI) August 8, 2021
Here are 6 golden reasons to invest in Sovereign Gold Bonds.
SBI customers can invest in these bonds on https://t.co/YMhpMwjHKp under e-services.
Know more: https://t.co/H4BpchASeA#Gold #GoldBond #SGBWithSBI #SovereignGoldBonds pic.twitter.com/EhN24oeb6h