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New Issue of Sovereign Gold Bond Scheme Starts Today! Check These Key Points Before Applying

Today, August 22, the second tranche of the Sovereign Gold Bond Scheme (SGB) 2022–23 will go on sale. Applications will be accepted for five days, through August 26. The Reserve Bank of India (RBI) announced that the issue price has been set at Rs 5,197 per gram of gold.

Binita Kumari
The price to issue a gram of gold will be Rs. 5,147 (Rupees Five Thousand One Hundred and Forty-Seven only).
The price to issue a gram of gold will be Rs. 5,147 (Rupees Five Thousand One Hundred and Forty-Seven only).

The Reserve Bank of India will issue sovereign gold bonds (SGBs) on behalf of the government, and public subscription will begin on Monday, August 22. The Sovereign Gold Bond scheme's second series is being offered for the fiscal year 2022–2023 at this time. The initial payment was made in June.

“Don’t miss out on this golden opportunity! SOVEREIGN GOLD BONDS SCHEME 2022-23 SERIES – II opens from 22 Aug to 26 Aug”, said SBI in a Tweet.

Today, August 22, the second tranche of the Sovereign Gold Bond Scheme (SGB) 2022–23 will go on sale. Applications will be accepted for five days, through August 26. The Reserve Bank of India (RBI) announced that the issue price has been set at Rs 5,197 per gram of gold.

The Indian Bullion and Jewellers Association's simple average closing price is used to determine the issue price of the second tranche sovereign gold bond 2022–2033. The price is announced for 999-purity gold during the final three working days of the week before the subscription period. The days in question are the 17, 18, and 19 of August.

Important Things to Know About Sovereign Gold Bond Scheme:

  • The price to issue a gram of gold will be Rs. 5,147 (Rupees Five Thousand One Hundred and Forty-Seven only).

  • In accordance with the Reserve Bank of India, the government has decided to grant investors who apply online and pay for their applications using digital methods a discount of 50 rupees per gram compared to the nominal value.

  • After the fifth year, there is a possibility of early redemption under the 8-year-long scheme. On the day that interest is due, this choice is available.

  • Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), selected post offices (as may be announced), National Stock Exchange, and BSE are among the places where investors can purchase the bonds directly or through intermediaries.

  • The SGB will have an eight-year tenor with an early redemption option after the fifth year that must be taken on the date when interest is due.

  • The investors will receive a fixed 2.50 percent annual return on the nominal value, payable every six months.

  • The SGBs may be used as loan collateral. The loan-to-value (LTV) ratio must be established at the standard gold loan requires that the Reserve Bank may occasionally impose.

  • The same Know-Your-Customer (KYC) standards will apply to the purchase of actual gold. A voter ID card, an Aadhaar card, a PAN card, a TAN card, or a passport are examples of KYC papers. The "PAN Number" provided by the Income Tax Department must be submitted with every application.

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