RBI's Gold Bond in 2022: Subscription opens today; here's how you can buy

The Reserve Bank of India (RBI) has announced the Sovereign Gold Bond Scheme 2022-23 -- Series III, which will be open for subscription from today (December 19). Sovereign Gold Bonds 2022-23 (Series III) will be opened for subscription during the period December 19-23, 2022 with settlement date December 27, 2022, according to a release by the Government of India.

The issue price of the Bond during the subscription period shall be Rs 5,409 per gram.

However, a discount of Rs 50 per gram from the issue price will be allowed to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs 5,359 per gram of gold.

How to buy Sovereign Gold Bonds?

The SGBs will be sold through scheduled commercial banks (except small finance banks, payment banks, and regional rural banks). Sovereign Gold Bonds can also be purchased from Stock Holding Corporation of India Ltd (SHCIL), Clearing Corporation of India Ltd (CCIL), designated post offices and recognised stock exchanges, namely the National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd.

Tenor of Sovereign Gold Bonds

The tenor of the bonds will be for a period of eight years with an option of premature redemption after the fifth year. Premature redemption can be done on the date on which interest is payable.

Minimum and maximum investment

The Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment in the Bond shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time.

Eligibility

As per RBI, persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

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