Sunday, May 10, 2020

Sovereign Gold Bond Scheme

* Sovereign Gold Bonds are government securities denominated in grams of gold. They are substitutes for holding physical gold.

* This scheme aims to reduce the demand for physical gold, thereby keeping a tab on gold imports and utilising resources effectively.

* Under the Sovereign Gold Bond Scheme, the Reserve Bank of India will issue the bonds on behalf of the Government of India.

* The bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram. 

* The tenor will be for a period of 8 years with exit option from the 5th year to be exercised on the interest payment dates.

* The minimum permissible investment limit will be 1 gram of gold.

* The maximum limit will be 4 kg for individual, 4 kg for Hindu Undivided Family and 20 kg for trusts and similar entities per fiscal (April-March) notified by the government from time to time.

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