IANS | 12 Feb, 2024
Finance Ministry on Friday said that the Sovereign Gold Bonds
2023-24 (Series IV) will be opened for subscription during February
12-16, with settlement date as February 21.
The gold bonds will be issued by the RBI at a price of Rs 6,263 per gram.
The
government in consultation with the Reserve Bank of India has decided
to allow a discount of Rs 50 per gram from the issue price of Sovereign
Gold Bonds to investors who apply online and the payment is made through
digital mode.
For such investors the issue price of Gold Bond will be Rs 6, 213 per gram of gold.
Payment
for the Bonds will be through cash payment (up to a maximum of Rs
20,000/-) or demand draft or cheque or electronic banking.
The
SGBs will be available through various channels, including scheduled
commercial banks, Stock Holding Corporation of India (SHCIL), Clearing
Corporation of India (CCIL), designated post offices, and recognised
stock exchanges, such as the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE).
Individual investors can start with a minimum investment of 1 gm and go up to a maximum of 4 kg.
The
know-your-customer (KYC) norms for SGBs are the same as that for
purchasing physical gold. KYC documents such as Voter ID, Aadhaar
card/PAN or TAN /Passport will be required. Permanent Account Number
(PAN) issued by the income tax department is mandatory.
SGBs come with tenure of eight years with an exit option after the fifth year. SGBs are tax free if held till maturity.
SGBs
also offer an annual interest of 2.50 per cent, credited semi-annually
to the buyer’s bank account, with the final interest payment made at
maturity along with the principal amount. Upon maturity, buyers will
receive the value of gold at current market prices, and the interest
income, all of which is tax-free.
SGBs can be used as collateral
for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary
gold loan mandated by the Reserve Bank from time to time.
