Sovereign Gold Bonds 2023-24 Declared: All Key Details Here

Date : 16/06/2023
Read: 3 mins

All the necessary information on Sovereign Gold Bonds 2023-24 for investors interested in long-term non-physical gold investment with fixed interest income.

The Sovereign Gold Bonds Scheme 2023-24 has been announced by the RBI
The scheme is available for investment in two tranches
SGB is suitable for non-physical investment in gold with assured interest income

New issues of Sovereign Gold Bonds (SGBs) will be available to investors in two tranches. This was confirmed in a press release by the Reserve Bank of India (RBI) on 14 June 2023.

Also Read: Don’t Buy Gold Before Reading This: Government Announces New SGBs for 2023

Key details – Sovereign Gold Bond Scheme 2023-24

SGB 2023-24 Series I – Date of subscription – 19-23 June 2023 – Date of issuance – 27 June 2023
SGB 2023-24 Series II – Date of subscription – 11-15 September 2023 – Date of issuance – 20 September 2023
The bonds will be sold through scheduled commercial banks, excluding small finance, payment and regional rural banks; Stock Holding Corporation of India, post offices, National Stock Exchange and Bombay Stock Exchange
It can be bought by individuals, Hindu Undivided Families (HUFs), trusts, universities, and charities
It is sold in denominations, starting with one gram and in multiples thereof
Maximum investment, including both tranches and from the secondary market, is 4kg for individuals and HUFs, and 20kg for trusts and other entities. The 4kg limit is applicable to the first applicant in the case of joint holding
SGBs have a tenor of eight years, with the option of premature redemption after five years
The simple average of the India Bullion and Jewellers Association Limited’s closing price for gold of 999 purity, for three working days of the week before the subscription period, will be the price of the SGB. A Rs 50 per gram discount is available for online purchases and digital payment
SGB up to Rs 20,000 can be bought in cash. Beyond that, non-cash modes like cheques, demand drafts, and online banking must be used
A fixed interest rate of 2.5% will be paid to the investor, payable twice a year on the nominal value. The interest income is taxable under the Income Tax Act, 1961
Capital gain tax on redemption of SGB is exempt in the case of an individual. Indexation benefits are available on long-term capital gains made on transfers of SGBs
The KYC norms of physical gold purchase are applicable for SGB purchases as well

Also Read: Gold’s Steady Glow: A Reliable Choice Amid Economic Turmoil

How to Apply for SGB

The application form for SGBs can be downloaded from the RBI website or from other issuing entities.

You must indicate the mode of subscription and the grams of gold applied for
You must provide your PAN, personal details, bank details and depository participant details (for demat holding of the SGBs)
Witness details and signature is also required
Documentations, as mentioned in the form, must be furnished

Also Read: Gold Investment in Rising Inflation: Should You Invest? Here’s What Experts Have to Recommend

SGB is a suitable investment if you are looking for non-physical exposure to gold, along with an assured interest income. While the tenor of the investment is long term, you can trade it in the secondary market.

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