Sovereign Gold Bonds: RBI Shifts Issue Date By A Week
With over two lakh applications for the
Sovereign Gold Bond, the Reserve Bank of India has shifted the issue date by a
week to September 30 for “smooth” uploading of the subscriptions in its
‘E-Kuber’ system.
- According to Finance Ministry, the
amount realised through the fifth tranche of the Sovereign Gold Bond
scheme is expected to cross Rs 820 crore. This was mobilised through over
2 lakh applications representing around 2.37 tonnes of gold.
- The total subscription in first
four tranches was Rs 2,239 crore corresponding to 7.85 tonnes of gold.
About Sovereign Gold Bond Scheme:
Under the scheme, gold bonds are issued in
denominations of 5 grams, 10 grams, 50 grams and 100 grams for a term of 5-7
years with a rate of interest to be calculated on the value of the metal at the
time of investment. The scheme has an annual cap of 500 grams per person.
- The bonds will be sold through
banks, Stock Holding Corporation of India Limited and designated post
offices.
- As per the scheme, the gold bonds
will be sold only to resident Indian entities including individuals, Hindu
undivided families, trusts, universities, and charitable institutions.
- The bond tenure will be eight
years with exit option beginning the fifth year onwards. They will also be
tradable in the bourses.
- Bonds can also be used as collateral for loans.
