The Reserve Bank of India (RBI) on Friday announced the launch of Sovereign Gold Bond Series XI which will be open for subscription from 1 February.
Subscription Period
The eleventh tranche of the Sovereign Gold Bond scheme 2020-21 will be available for five days starting February 1 to February 05, 2021.
Issue Price
The issue price for Sovereign Gold Bond has been fixed at ₹4,912 per gram of gold.
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.
For such investors, the issue price of the bond will be Rs 4,862 per gram of gold.
Subscription limit
The minimum limit for subscription will be of one gram and a maximum of 4 kg for individuals.
And, for Hindu Undivided Family (HUF) it will be 4 kg whereas 20 kg for trusts and similar entities for one fiscal year
The bonds will be issued in denominations of one gram or multiples of it.
Interest Rate
The interest on the bonds will be at a fixed rate of 2.50 percent per annum on the nominal value of the bond.
Tenor of the bond
The tenor of the bond is for a period of 8 years with an exit option after the 5th year to be exercised on the next interest payment dates.
Eligibility
Resident individuals, Hindu Undivided Families (HUFs), trusts, universities as well as charitable institutions can put in their funds in gold bonds, subject to investment limits.
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