Sovereign Gold Bonds (SGB): The Reserve Bank of India (RBI) has released a schedule for early redemption of Sovereign Gold Bonds (SGBs) issued between May 2017 and March 2020. The central bank plans to process redemption of 30 SGBs from October 11, 2024, to March 1, 2025.
As per RBI guidelines, gold bond holders can apply for early redemption of their bonds after a holding period of five years from the date of issue. “In terms of the Consolidated Procedural Guidelines on SGB Scheme issued by the RBI, early redemption of gold bonds is permissible after five years from the date of issue of such bonds,” the central bank said.
The central bank has stressed that investors should adhere to the designated filing periods and note that redemption dates may change in case of unscheduled holidays. For further details, investors are advised to check the official RBI circular or contact the bond issuing authorities. Investors can view the redemption schedule here: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=58564
“However, it may be noted that the above-mentioned dates may be subject to change in case of unscheduled holidays. Investors are advised to take note of the period for submission of redemption requests for SGB, in case they opt to redeem their holdings before maturity,” the RBI said in its statement.
Sovereign gold bonds
Launched under the Government Securities Act 2006, the SGB offers investors a systematic option to invest in gold. It is targeted at investors including individuals, trusts, charities and universities. The bonds allow investments starting from one gram of gold, with a maximum of 4 kg per financial year for individuals and up to 20 kg for trusts and similar entities.
Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the government. These bonds are available in multiples of grams of gold, with the basic unit being 1 gram and the minimum permissible investment being 1 gram. Investors in Sovereign Gold Bonds receive an annual interest rate of 2.50 percent. These bonds have a maturity period of eight years, with an exit option after the fifth year.
Benefits of investing in SGB
-Investing in SGB can help you diversify your portfolio.
-These gold bonds, backed by the RBI, enjoy greater credibility.
-They offer an attractive rate of return.
-SGBs appreciate in capital as their value increases with the price of gold.
-In addition, the interest generated by SGBs is exempt from income tax.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.