Sovereign Gold Bond Scheme 2024 – One of the markets in India that is expanding the quickest is the stock market. Millions of people participated in the stock market last year. Some citizens use it as a supplemental source of income. The country’s population was looking for secondary income during the COVID 19 epidemic, and the Indian stock market was an alternative for them at the time; now, some investors use it as their major source of income. Bonds make up the other segment of the market, and individuals purchase them from the government at discounted rates before reselling them at higher prices. In this article, we will learn about the Sovereign Gold Bond. In addition, we will go through the brief of the scheme and learn about its rates.
Table of Contents
Sovereign Gold Bond Scheme 2024
The actual gold is replaced by government securities known as sovereign gold bonds, which are issued by the Reserve Bank of India (RBI). These SGBs are weighed in grams and are provided on a regular basis. The leading financial institution regulates the issuance price for each series. Every citizen of the country can purchase and sell on a secondary market or during the series.
Sovereign Gold Bond Scheme 2024 Overview
| Name of Scheme | Sovereign Gold Bond Scheme 2024 |
| launched by | The Reserve Bank of India (RBI) |
| Rate | Rs 5,197 per gramme of gold |
| Start Date | 22 August 2022 |
| End Date | 26 August 2022 |
| Benefits | Gold Bonds |
Objective of Sovereign Gold Bond Scheme 2024
The main objective of the bonds is to reduce the demand for physical gold. The RBI distributes bonds on the center’s behalf. Banks, the Stock Holding Corporation of India Limited (SHCIL), several post offices, the NSE and BSE, two well-known stock exchanges,
The simple average closing price of 999-purity gold for the three working days before the subscription period is used by the India Bullion and Jewellers Association Limited to determine the bond’s price in Indian rupees. A duration of 8 years will be the length of the bond.
Benefits of the Sovereign Gold Bond Scheme 2024
SGBs have several benefits, which makes them a very beneficial investment. Some of the main benefits of the scheme are
- Both the storage and security concerns are removed because the investor has no need to keep or store the gold physically.
- The investor also gets their money back at the going rate for gold on the market. Because of this, the investor has more control over the time and cost of redeeming their gold.
- Investors will get the nominal value at a set rate of 2.50 percent per year, payable every other year.
- The SGBs might be used as security for loans. The loan-to-value (LTV) ratio must be set at the same level as the Reserve Bank’s typical gold loan.
Eligibility Criteria of the Sovereign Gold Bond Scheme
In order to apply for the bonds, you need to go through the following eligibility criteria before applying for the bonds.
- The applicant should be an Indian resident with proof of residency in the state.
- Individuals, organisations, trusts, HUFs, and other entities are all permitted to invest in this programme as long as they are Indian residents. Bond investments can be made jointly under the plan with other qualified participants.
- On behalf of minors, parents or guardians may purchase this bond.
- The smallest amount that may be invested will be one gram of gold.
- Each individual may commit up to four kilograms, HUFs up to four kilograms, and trusts and other organisations of a similar nature up to twenty kilograms every financial year.
Documents Required for the Sovereign Gold Bond Scheme
Some of the main documents required for the scheme are as
- Pan Card of the applicant
- Aadhar Card of the applicant linked with working mobile number
- Passport Size photo and signatures for KYC
- Bank Statement
Note: The name and date of birth should be the same in each document for KYC.
Exchange for Sovereign Gold Bond Scheme
In order to apply for the bonds you need to go for some of the one exchange where you can buy and sell you gold bonds. The some of the main exchange in the country are as
- Commercial Banks such as HDFC Bank, ICICI Bank, State Bank of India etc.
- the Stock Holding Corporation of India Limited (SHCIL)
- the Clearing Corporation of India Limited (CCIL)
- National Stock Exchange of India (NSC)
- Bombay Stock Exchange (BSC)
The applicant can also apply from the different brokers of the country such as Upstox, agnel One, Groww, 5 Paisa Etc. In order to apply from these brokers the applicant should register themselves from any of the brokers.