Reserve Bank Of India Sovereign Gold Bond Scheme (SGBs) 2022-23 – Interest Rate, Online Purchase, Application Form

Sovereign Gold Bond Scheme (SGBs) was launched by the government in November 2015 under the Gold Monetization Scheme which is the right option to invest in physical gold with these bonds, you can enjoy capital growth and also earn interest every year. Under this scheme, investment is started in installments by the Reserve Bank of India in consultation with the Government of India In which these bonds issued by the Government of India also eliminate many of the risks associated with physical gold. Under this scheme, investment is initiated in installments by the Reserve Bank of India in consultation with the Government of India and investment is initiated by the Reserve Bank of India in consultation with the Government of India, these bonds can be purchased through internet banking or iMobile application.

How To Apply:

• Applicants can apply online through the website of the listed scheduled commercial banks.
• Investors applying online and fill up online application with required documents.
• The payment against the application is made through digital mode.

Official Website: Reserve Bank Of India Sovereign Gold Bond Scheme (SGBs) 2022-23

Notification: Reserve Bank Of India Sovereign Gold Bond Scheme (SGBs) 2022-23

Reserve Bank of India Sovereign Gold Bond Scheme (SGBs) 2022-23 – Notification, Discount On Buying Gold, Tax Free Investment, Apply Online

RBI notifies the terms and conditions of this scheme from time to time and the rate of SGB is announced by RBI through a press release before each new investment. Sovereign Gold Bonds are an alternative to holding physical gold under which each application must carry PAN number issued to investors by the Income Tax Department as per RBI instructions. In SGBs scheme, investors will have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. Sovereign gold bonds are government securities, denominated in grams of gold, issued by the Reserve Bank on behalf of the Government of India and these bonds are denominated in multiples of gram(s) of gold with a base unit of 1 gram.

In SGBs scheme, the tenure of the Sovereign Gold Bond is for a period of 8 years in which the exit option after the 5th year will be exercised on the interest payment date. Under this scheme, investors will have to make a minimum investment of 1 gram of gold with a maximum membership limit of 4 kg for individuals as well as HUFs and 20 kg for trusts, universities and charitable institutions. Sovereign Gold Bond Scheme is government backed gold bond scheme which is 100% safe and free gold storage scheme which offers 2.5% annual interest which is paid every 6 months.

Reserve Bank of India Sovereign Gold Bond Scheme (SGBs) 2022-23 Details – Eligibility, KYC Documents Required, Maturity, Minimum Investment, Demat Form, Interest Rate, Premature Withdrawal

 

• Sovereign Gold Bond (SGBs) Scheme Eligibility:

1. Individuals must be Indian residents with the Foreign Exchange Management Act 1999 framing the eligibility criteria.
2. Individuals, associations, trusts, HUFs etc. are all eligible to invest in this scheme, provided they are residents of India or can invest in bonds jointly with other eligible members.
3. The guardian or parents of minors can buy this bond on their behalf.

• KYC Required Documents:

1. Proof of Identity (Aadhaar Card/PAN or TAN/Passport/Voter ID Card)
2. The KYC process will be done by the bond issuing banks, agents or post offices.

Features and Benefits of Sovereign Gold Bond Scheme:

• SGBs Investment – This is a scheme issued by the Reserve Bank of India on behalf of the Government of India.
• Gold Denomination – Bonds under this scheme will be denominated in multiples of the weight of gold in grams on a unit basis of 1 gram.
• Maturity – The bond tenure under this scheme will be 8 years and can be exercised out of the scheme in the 5th, 6th and 7th year on the interest payment dates.
• Minimum Investment – The minimum allowable investment limit under this scheme is 1 gram of gold.
• Payment Mode – The bond payment under this scheme can be made in cash (up to a maximum of Rs.20,000/-) or by demand draft or check or through electronic banking.
• Demat Form – Bonds can be converted into Demat form under this scheme, holding certificate will be issued to the investors for this.
• Rate of interest – Under this scheme, investors will be given interest at a fixed rate of 2.50 percent per annum on the nominal value, which will be payable on half-yearly basis.
• Tax Benefits – Interest received from gold bonds is taxable under the IT Act, 1961 under which capital gains tax as applicable to the investor is exempt from tax, in addition, indexation benefit is provided to an investor for the long-term capital gains that arise.
• Premature Withdrawal – Under this scheme, premature encashment of these bonds is allowed after 5 years of issuance.
• Loan Collateral – Under this scheme investors can use these bonds as collateral against the loan.

Under this scheme, gold bonds are issued every month from October 2021 to March 2022 which is covered under Stock under Government Security Act, 2006 which are issued in installments by the Reserve Bank of India in consultation with the Government of India, for which a holding certificate is also given to the investors. The risk associated with sovereign gold bonds is generally very low as per we know gold has traditionally been a very safe investment However, gold rates depend on the performance of the market, any fall in gold can put the capital at risk which would be the same even if you owned physical gold. If you want to get latest details about Sovereign Gold Bond (SGBs) Scheme you can visit its official website.