Sovereign Gold Bond Scheme Latest News: The Reserve Bank of India (RBI) on behalf of the Central government has opened the fifth tranche of Sovereign Gold Bond (SGB) Scheme 2020-21 Monday and fixed the price at Rs 5,334 per gram. Also Read - RBI to Retain Lending Rates, Accommodative Stance, Say Experts | Read Here
As per updates, the Sovereign Gold Bond Scheme 2020-21-Series IV is open for subscription from August 3 to 7. Also Read - RS Passes Banking Amendment Bill 2020, Co-op Banks to Function Under RBI's Supervision Now | Key Points
1) Experts related to the matter believe that the demand for gold has increased by about 37% this year as investors take a backseat from equities in a volatile market. Also Read - RBI Issues Norms For Banks to Appoint Chief Compliance Officers
2) Prior to this, the first tranche of Sovereign Gold Bond Scheme 2020-21 was open for subscription from April 20 to 24.
3) Later, the issue price for the fourth tranche of Sovereign Gold Bond Scheme 2020-21 was open in July was Rs 4,852 per gram of gold.
4) After consulting the RBI, the Central government decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online.
5) Earlier, the RBI had said that it will issue Sovereign Gold Bonds (SGBs) in six tranches beginning from April till September.
6) Notably, the RBI has said that the Sovereign Gold Bond Scheme 2020-21 will be sold through banks, Stock Holding Corporation of India (SHCIL), designated post offices, and recognised stock exchanges (NSE and BSE).
7) Launched in 2015, the objective of the Sovereign Gold Bond Scheme is to reduce the demand for physical gold and shift a part of the savings, used for buying gold, into savings.
8) The RBI has also said that the maximum limit of subscription will be 4kg gold for individuals and HUFs, and 20kg for trusts.
9) For investor’s information, the minimum investment in the Sovereign Gold Bond Scheme will be as low as 1 Gram, and the maximum can go up to 4 kg for individual investors, and 20 kg for the trusts, charitable organisations.
10) As per the directives from the RBI, the Sovereign Gold Bond Scheme offer an annual interest rate of 2.50% to investors.