Centre fixes price for Sovereign Gold Bonds at Rs.3,443 per gram
Government of India has fixed the price at Rs.3,443 per gram for the new series of Sovereign Gold Bonds (SGBs) opening July 8.
Union Finance Ministry recently announced that Centre in consultation with Reserve Bank of India (RBI) has decided to allow a discount of Rs.50 per gram from issue price to those investors who apply online and payment which is made via digital mode. This implies that for such investors, the issue price of gold bond will be Rs.3,393 per gram of gold.
On 30 may 2019 RBI announced calendar for issuance of SGB for 1st half of current financial year (2019-2020).
The SGB’s will be issued every month from June 2019 to September 2019.
About Sovereign Gold Bond Scheme
It was launched by Government of India in November 2015 with the goal of reducing the demand for physical gold and shifting a part of domestic savings, used for purchase of gold, into financial savings.
Under the SGB scheme, bonds are denominated in units of 1 gram of gold and multiples thereof.
Minimum Investment: in bonds is 1 gram and a maximum limit of subscription of 500 gram/person/fiscal year (April-March).
Maximum Limit: of subscription is 4 kg for an individual and Hindu Undivided Family (HUF) and 20 kg maximum subscription limit for trusts and similar entities per fiscal (April-March).
Annual Ceiling: includes bonds subscribed under different tranches during initial issuance by centre and those purchased from secondary market.
Month: Current Affairs - July, 2019
Category: Government Schemes Current Affairs