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Last Updated : Aug 03, 2020 05:32 PM IST | Source: Moneycontrol.com

Sovereign Gold Bonds 2020-21 | Fifth tranche opens for subscription today: All you need to know

The issue price for the sovereign gold bond under the latest tranche has been fixed at Rs 5,334 per gram.

The Sovereign Gold Bonds Scheme 2020-21 Series 5 opens for public subscription from August 3 to August 7, 2020. The issue price for the sovereign gold bond has been fixed at Rs 5,334 per gram, the Reserve Bank of India (RBI) said in a statement on July 31. The issuance date for the latest tranche of gold bonds will be August 11, 2020.

For buyers making the purchase and payment of these bonds online, the government has offered a discount of Rs 50. The issue price of the bonds for such investors will thus be Rs 5,284 per gram of gold.

Here is a list of key things to know about Sovereign Gold Bonds (SGBs): 


> In April this year, the central bank had announced that the government will issue SGBs in six tranches, beginning April 20 till September.

> SGBs are government securities denominated in grams of gold, an alternative to holding physical gold. These are issued by the RBI on behalf of the Government of India.

> The bonds are denominated in multiples of gram(s) of gold, with a basic unit of 1 gram. The tenor of the SGB is eight years with an exit option after the fifth year to be exercised on the interest payment dates.

> The bonds are restricted for sale to resident Indians, Hindu Undivided Families (HUFs), trusts, universities and charitable institutions.

> The minimum investment in the bonds is one gram, with a maximum limit of subscription of 4 kg for individuals, 4 kg for HUFs and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March). In case of a joint holding, the limit applies to the first applicant.

> First launched in November 2015, the SGB scheme was aimed at reducing the demand for physical gold and shift a part of the domestic savings - used for the purchase of gold - into financial savings.

> The sixth and last tranche of gold bonds under the scheme (Sovereign Gold Bond Scheme 2020-21 Series VI) are scheduled to open for subscription between August 31 and September 4 later this year.
First Published on Aug 3, 2020 05:31 pm