1. You Are At:
  2. English News
  3. Fyi News
  4. Hurry up! RBI selling gold cheaper than market rate, offer ends today

Hurry up! RBI selling gold cheaper than market rate, offer ends today

Modi Government has launched Sovereign Gold Bond (SGB) under which you will get gold at a cheaper rate as compared to the market price. The price of one gram gold has been kept at Rs 3,443. Notably under this instead of gold, one will get bond of the gold purchased issued by the RBI bank.

India TV News Desk India TV News Desk
New Delhi Updated on: July 12, 2019 14:12 IST
Sovereign Gold Bond
Image Source : FILE PIC

Sovereign Gold Bond

Finance Minister Nirmala Sitharaman in her maiden budget speech on July 5, announced a hike in import duty on gold from 10 per cent to 12.5 per cent. per cent. After the announcement of the increase in import duty, gold price witnessed a huge hike. However, here is good news for individuals who are planning to invest in gold. The government is giving an opportunity to buy gold at a cheap rate compared to the market price. The gold price has been fixed by the Reserve Bank of India. 

Modi Government has launched Sovereign Gold Bond (SGB) under which you will get gold at a cheaper rate as compared to the market price. The price of one gram gold has been kept at Rs 3,443. Notably under this instead of gold, one will get bond of the gold purchased issued by the RBI bank. 

"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. July 03 to July 05, 2019, works out to Rs 3,443 per gram," said in a press release. The Sovereign Gold Bond Scheme 2019-20 - Series II was open for subscription from July 08 to July 12, 2019, according to a press release by Reserve Bank of India (RBI).

Sovereign Gold Bond Scheme Calendar of issuance:

S.No.

Tranche

Date of Subscription

Date of Issuance

1

2019-20 Series I

June 03-07, 2019

June 11, 2019

2

2019-20 Series II

July 08–12, 2019

July 16, 2019

3

2019-20 Series III

August 05-09, 2019

August 14, 2019

4

2019-20 Series IV

September 09-13, 2019

September 17, 2019

Extra Discount on Online Payment: 

On purchasing Sovereign Gold Bond online, one will get an extra discount of Rs 50/ per gram. Individuals who invest for Sovereign Gold Bond online will pay only Rs 3,393 per gram gold. While the price of one gram 22 carat pure gold in Delhi is Rs 3360 and 24 carat one grams of gold is Rs. 3528.

ALSO READ: Do you use Master or Visa card? Then this news is for you

"The Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be Rs 3,146 per gram of gold," said RBI in a statement.

Terms of the investment?

On have to buy a minimum of one gram of gold. Meanwhile, an individual can buy 4 kg gold maximum. Every year, one will get a 2.5 per cent interest on the purchased gold.

1. Sovereign Gold Bond is for 8 years.

2. However, after five years, it can be sold.
3. Three days before you sell the bond, (at least five years later) it will redeem according to the Simple Average price.

The features of the Bond are: 

Sl. No.

Item

Details

1

Product name

Sovereign Gold Bond 2019-20

2

Issuance

To be issued by Reserve Bank India on behalf of the Government of India.

3

Eligibility

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

4

Denomination

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

5

Tenor

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

6

Minimum size

Minimum permissible investment will be 1 gram of gold.

7

Maximum limit

The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal (April-March) notified by the Government from time to time.

ALSO READ: Gold prices zoom Rs 930 on firm global cues

ALSO READ: Gold rallies as interest-cut expectations weaken dollar

Write a comment