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RBI to Issue Two Tranches of Sovereign Gold Bonds in December and March

The Reserve Bank of India is to issue two tranches of Sovereign Gold Bonds, which will open for public subscription in December and March. Sovereign Gold Bonds (SGBs) 2022-23-Series III will open for subscription during December 19-December 23 and 2022-23-Series IV during March 06-10, 2023. These bonds are issued by the Reserve Bank of India (RBI) on behalf of the government.

The SGBs will be sold through Scheduled Commercial, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and stock exchanges — NSE and BSE.

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RBI to Issue Two Tranches of Sovereign Gold Bonds in December and March- Key Points

  • The tenor of the SGB will be for eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable.
  • The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
  • The maximum limit of subscription is 4 kilograms for individuals, 4 kg for HUF, and 20 kg for trusts and similar entities per fiscal year.
  • The Loan-To-Value (LTV) ratio is to be set equal to the ordinary gold loan mandated by the Reserve Bank from time to time.
  • The price of SGB is fixed in Indian Rupees based on a simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period.
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