Why the Scheme is in News?
The Sovereign Gold Bonds 2023-24 (Series I) will be available for subscription from June 19-23, 2023 as per the Government of India Notification No.4(6)-B(W&M)/2023 dated June 14, 2023. The Settlement date for the same has been fixed for June 27, 2023. During the subscription period, the Bond’s issue price will be Rs 5,926 (Rupees Five Thousand Nine Hundred Twenty Six only) per gram, as per the RBI’s Press Release issued on June 16, 2023.
Investors who apply online and make payment through digital mode will be eligible for a discount of Rs 50 (Rupees Fifty only) per gram from the issue price, as decided by the Government of India in consultation with the Reserve Bank of India. The issue price for such investors will be Rs 5,876 (Rupees Five Thousand Eight Hundred Seventy Six only) per gram of gold.
About Sovereign Gold Bond Scheme:
Sovereign Gold Bond Scheme is a government scheme launched to help individuals invest in gold. This scheme was introduced in 2015 by the Government of India to reduce the import of physical gold and to mobilize people’s unused gold holdings in the country. The scheme provides an opportunity for investors to invest in gold without the risks of theft, storage, or making charges.
Sovereign Gold Bond Scheme: Key Features
● Under the Sovereign Gold Bond Scheme, investors can invest in gold in the form of bonds.
● The bond’s value is linked to the price of gold in the market, and investors earn returns on the investment at the prevailing market rate.
● The investment tenure of this scheme is eight years, and investors can redeem the bond at the end of the term or sell these bonds in the secondary market.
● The scheme also offers interest income at the rate of 2.5% per annum on the investment amount.
● The interest payment is made semi-annually to the investors’ registered bank account.
● The gold bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
Sovereign Gold Bond Scheme: Benefits
The Sovereign Gold Bond Scheme offers several benefits to investors. Some of them are listed below:
● Firstly, it provides an opportunity to invest in gold at a reasonable price without facing physical delivery issues.
● Secondly, it is an efficient way to invest in gold as the bonds are traded in the demat form.
● Thirdly, investors can earn interest income on the investment amount.
● Lastly, the scheme offers tax benefits on the investment, such as tax exemption on capital gains tax if the investment is kept until maturity.
Sovereign Gold Bond Scheme: Requirements
Following are the requirements to invest in the Sovereign Gold Bond Scheme:
● To invest in the Sovereign Gold Bond Scheme, an investor must have a Permanent Account Number (PAN) card.
● The minimum investment amount is one gram of gold, and the maximum investment is 4 kg per year for an individual investor.
● Investors can apply for the bonds online or through registered banks, stock exchanges, and post offices.
Sovereign Gold Bond Scheme: Vision
The Sovereign Gold Bond Scheme is a golden opportunity for investors to invest in gold with many benefits, such as no fear of theft or storage, interest income, and tax benefits. It is an excellent investment option for those who wish to diversify their portfolio and protect their wealth from market volatility.