Sovereign gold bond scheme Series X opens today; Key details here

28 Feb 2022 , 04:24 PM

The Sovereign Gold Bond Scheme 2021-22 – Series X will open for subscription from today, February 28. The issue price for the same has been fixed at Rs5,109 per gram of gold.

Online subscribers can secure these bonds at a discount of Rs50 per gram at Rs5,059.

As per the Ministry of Finance, “In terms of Government of India Notification No.4(5)-B(W&M)/2021 dated October 21, 2021, Sovereign Gold Bonds 2021-22 (Series X) will be opened for subscription during the period February 28- March 04, 2022, with Settlement date March 08, 2022.”

The issue price of the Bond during the subscription period shall be Rs5,109 — per gram, as also published by RBI in their Press Release dated February 25, 2022, the Ministry of Finance added.
The tenure of the bond will be for a period of eight years with an exit option after the fifth year to be exercised on the next interest payment dates. The Minimum permissible investment is 1 gram of gold.

Here are the key details:

• These bonds will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited, Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges.
• The bonds will be restricted for sale to resident individuals, HUFs, trusts, universities, and charitable institutions.
• The bonds can be purchased in multiples of gram(s). The tenure of the bond is 8 years with an exit option after the 5th year.
• The minimum permissible investment will be 1 gram and the maximum limit is 4kg for an individual, 4kg for HUF, and 20kg for trusts per fiscal (April-March).
• Bonds can be purchased through cash payment (maximum limit Rs20,000) or demand draft, cheque, internet banking.
• The investors will earn 2.50 per cent interest per annum payable semi-annually.
• These bonds can be used as collateral for loans similar to an ordinary gold loan, as mandated by the RBI.
• The issue price for Series IX, which was open for subscription during January 10-14, was Rs4,786 per gram of gold.
• The Scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings – used for the purchase of the yellow metal – into financial savings.