The Reserve Bank of India (RBI) announced that the Sovereign Gold Bond (SGB) Scheme 2022-23 – Series IV will begin on March 6 and end on March 10 in its circular. The issue price for the Gold Bond has been set at Rs 5,611 per gram of gold.
As per the circular, “The nominal value of the bond based on the simple average of closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three working days of the week preceding the subscription period, i.e. March 01, March 02, and March 03, 2023.”
In promotion of the Digital India scheme, the Government has announced a Rs 50 discount per gram of Gold for online purchases of the SGB. An SGB purchased online will cost Rs 5,561 per gram of gold. The SGB will also be available at Stock Holding Corporation of India Limited, certain post offices, National Stock Exchange and the Bombay Stock Exchange.
The SGB will yield an interest of 2.5% with a lock-in period of eight years as reported by the Business Standard. All Indian nationals can invest in the SGB scheme with the minimum unit being 1 gram of gold.
The Central government uses RBI to issue Sovereign Gold Bonds as an alternative to buying physical gold. The investors are issued a Certificate of Holding for their stake which can be converted into Demat form or used as collateral for loans.
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