SGBs are gold-denominated government securities. They are a viable alternative to physical gold. The Reserve Bank of India issues SGBs on behalf of the Government of India.

SGBs provide a variety of advantages to investors, which include:
The quantity of gold paid by the investor is protected because he receives the current market price at the time of redemption/premature redemption.
There are no risks or expenses associated with physical storage.
Making charges and purity issues
There will be no making charges and no purity issues.
On the initial investment, earn 2.5 percent interest per year & Interest is paid twice per year.

If the market price of gold falls, there is a chance of capital loss.

SGBs are available to all Indian residents as defined by the Foreign Exchange Management Act of 1999. Individuals, HUFs, trusts, universities, and charitable institutions are all eligible investors.

Yes, the joint ownership will be permitted.

Yes. The minor’s guardian must file the application on his or her behalf.

The Bonds are issued in denominations of one gram of gold and multiples thereof
Min investment in the bond shall be 1gr, with a maximum subscription limit of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF), and 20 kg for trusts and similar entities
The limit applies to the first applicant in the case of joint ownership.
The annual ceiling will include bonds purchased in different tranches during the government’s initial issuance as well as those purchased in the secondary market.
The investment limit will not include collateral held by banks and other financial institutions.

Yes, each family member can purchase bonds in his or her own name if they meet the eligibility requirements.

Yes. Because the ceiling is set on an annual basis , an investor/trust can purchase 4 kg/20 kg of gold each year.

In the case of a joint holding, the maximum limit will apply to the first applicant.

The Bonds pay interest at a fixed rate of 2.50 percent per year on the initial investment.
At maturity, there will be no capital gains tax.
Interest will be credited semi-annually to the investor’s bank account, and the final interest will be payable along with the principal at maturity.

The nominal value of Gold Bonds shall be in INR and shall be determined by the simple average of the closing price of gold of 999 purity published by the India Bullion and Jewelers Association Ltd for the 3 business days proceeding the subscription period.

The relevant tranche’s gold price will be published on the RBI website two days before the issue opens.

The Gold Bonds will be redeemed in Indian Rupees upon maturity.

The interest and redemption proceeds will be credited to the bank account provided by the customer when purchasing the bond.

The investor will be notified one month before the bond’s maturity date. (to be written)

Despite the bond’s 8-year term, early redemption is permitted after the fifth year from the date of issue.

If the bond is held in Demat form, it can be traded on exchanges. It can also be transferred to another qualified investor.

The bond can be given or transferred to a relative, friend, or anyone who meets the eligibility requirements.

TDS does not apply to the bond. However, it is the bond holder’s responsibility to ocmtax laws.

The bonds will be available for trading on a date announced by the RBI. The bonds can also be sold and transferred in accordance with the provisions of the Government Securities Act of 2006.