This article offers a brief summary of the key aspects of the Bank of India’s Sovereign Gold Bond schemes. Since these details are subject to frequent updates, please refer to the bank’s official website for the most current information on features and interest rates.
Bank of India – Sovereign Gold Bond Features:
- The Bond tenure spans 8 years with an exit option available after the 5th year, to be exercised on interest payment dates. The minimum permissible investment is set at 1 gram of gold.
- For individual subscribers, the maximum subscription limit stands at 4 KG, while it is also 4 KG for HUFs and 20 KG for trusts and similar entities per fiscal year (April-March), as notified by the Government periodically.
- The annual ceiling includes bonds subscribed under various tranches during the initial issuance by the Government and those acquired from the Secondary Market. Bonds are denominated in multiples of grams of gold, with a basic unit of 1 gram.
- Payment for the Bonds can be made through cash (up to a maximum of 20,000), demand draft, cheque, or electronic banking.
- The price of SGB is declared by RBI a day before the launch. The Bond’s price is fixed in Indian Rupees based on the simple average of the closing price of gold with 999 purity, published by the India Bullion and Jewellers Association Limited for the last 3 working days of the week preceding the subscription period.
- Additionally, subscribers who opt for online subscription and pay through digital mode will have the issue price reduced by Rs. 50 per gram.
How to invest?
Click here to invest in the Bank of India’s Sovereign Gold Bond schemes.
Note: The information presented here is sourced from publicly available data. We cannot be held responsible for any inaccuracies in the details. For the most current and accurate information, please visit the official website of the respective bank/institution.