The Central government's Sovereign Gold Bond (SGB) scheme has seen more takers than the first one launched during the end of last year.
According to initial estimates, the second tranche of the scheme, for which subscriptions were open during 18-22 January 2016, saw 3.16 lakh applications for 2,790 kg of gold amounting to Rs 726 crore.
"The trend during the second tranche of SGB shows that the scheme is gradually picking up amongst the investors with increase in awareness and more clarity about the provisions of the scheme", stated a government release.
The top ten receiving agencies in terms of subscription amount are SBI, Indian Bank, Syndicate Bank, ICICI Bank, Bank of India , Punjab and Sind Bank, Andhra Bank , Canara Bank, PNB, and Central Bank of India, the finance ministry statement said.
These Bonds will be issued on February 8, 2016.
The first tranche of SGB issued during November 2015 had seen 62,169 applications for a total subscription of 915.953 kg of gold amounting to Rs 246.20 crore by the banks and post offices.
Sovereign Gold Bonds are issued on behalf of Government of India in tranches by RBI, from time to time, on payment of the required amount in rupees. The bonds are denominated in grams of gold and are restricted for sale to resident Indian entities including individuals, HUFs, trusts, universities, charitable institutions. Minimum permissible investment is two gm of gold, the value of which is to be paid in rupees.
The maximum amount that can be subscribed is 500 gm per person per financial year. The government has fixed the rate of interest on gold bonds for the year 2015-16 as 2.75 per cent per annum, payable on half-yearly basis. The tenure of the bond is for a period of eight years with exit option from fifth year onwards. On maturity, the investor will get the equivalent rupee value of the quantum of gold invested at the then prevailing price of gold.