The fourth series or tranche of government-run sovereign gold bonds scheme (2020-21) opened for subscription on Monday. The scheme will remain open till July 10 with a settlement date of July 14, as per a notification issued by the government.
The issue price of the bond during the subscription period will be Rs 4,852 per gram.
Here are key things to know about the scheme:
* In consultation with the Reserve Bank of India (RBI), the government has decided to allow a discount of Rs 50 per gram from the issue price to those investors who apply online and the payment is made through digital mode.
* For such investors, the issue price of the gold bond will be Rs 4,802 per gram of gold, according to an official statement.
* The sovereign gold bond scheme was launched in November 2015 with an objective of reducing demand for physical gold and shifting a part of domestic savings, used for the purchase of the yellow metal, into financial savings.
* The bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram and the tenor of the bonds scheme will be eight years with exit option after the fifth year to be exercised on interest payment dates.
* The bonds are restricted for sale to resident individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions.
* The minimum permissible investment will be 1 gram of gold, and the maximum limit of subscription shall be 4 kg for individual, 4 Kg for HUF, and 20 kg for trusts and similar entities per fiscal (April-March).
* The gold bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India (SHCIL), designated post offices, and recognized stock exchanges (NSE and BSE).
* In April this year, the RBI had announced that the government will issue gold bonds scheme in six tranches till September.
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