RBI announces issuance of Sovereign Gold Bond 2021-22 Series-V from August 9, 2021, to August 13, 2021. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. August 04, August 05 and August 06, 2021, works out to ₹4,790/- (Rupees four thousand seven hundred and ninety only) per gram of gold. RBI has decided to offer a discount of ₹50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be ₹4,740/- (Rupees four thousand seven hundred and forty only).
The bonds will be denominated in multiples of gram (s) of gold with a basic unit of 1 gram. The tenor of the bond will be for 8 years with an exit option after the 5th year to be exercised on the next interest payment dates. The minimum permissible investment is 1 gram of gold. The maximum limit of subscription is 4 kilograms for individuals, 4 kilograms for HUF, and 20 kilograms for trusts and similar entities per fiscal (April-March).
The bonds will be sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and National Stock Exchange and BSE. To know how to subscribe for Sovereign Gold Bonds click: guidelines
The Government of India had come up with the SGB scheme in 2015. The bonds have been issued through RBI, repayable on the expiration of eight years from the date of issue. RBI went for early redemption of the first tranche of bond issued in October 2015 in May 2021 at ₹4,837 per unit of SGB. The issue price was ₹2,684 per gram. This translates into an appreciation of about 80 percent over the issue price in 67 months.
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