The Reserve Bank of India (RBI) has fixed the sovereign gold bond issue price at Rs 4,912 per gram.
The Sovereign Gold Bond Scheme 2020-21 - Series XI will be open for subscription from February 1 to February 5, 2021, the central bank said.
The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. January 27 - 29, 2021 works out to Rs 4,912 per gram of gold.
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The government, in consultation with the RBI, decided to offer a discount of Rs 50 per gram on the nominal value to investors applying online and the payment against the application made through digital mode. For such investors, the issue price of the bond will be Rs 4,862 per gram of gold.
The bonds will be issued in denominations of one gram or multiples thereof.
The minimum limit of subscription shall be of one gram and a maximum of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities for one fiscal year.
The bonds may be held by a trust, HUFs, charitable institution, university or by a person resident in India, being an individual. In his capacity as such individual, or on behalf of minor child, or jointly with any individual.
The interest on the bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 percent per annum on the nominal value of the bond.
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