The first tranche of Sovereign Gold Bonds 2021-22 opened for subscription on Monday. These will be issued in six tranches from May 2021 to September 2021, according to a statement issued by the Finance Ministry.
The issue comes at a time when gold prices are rising after dropping sharply in the last couple of months.
While the subscription period for 2021-22 Series I will be from May 17-21, the bonds will be issued on May 25.
Let's find out what the Centrally-run scheme is all about:
- The Reserve Bank of India (RBI) will issue the bonds on behalf of the Government of India.
- The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period, comes to around Rs 4,777 per gram of gold.
- Minimum subscription limit for an individual has been set at one gram.
- Maximum subscription limit for an individual at the same time has been set at 4 kg.
The gold bonds will be sold through the scheduled commercial banks, except for the small finance banks and payment banks, designated post offices, recognised stock exchanges such as Bombay Stock Exchange Limited and National Stock Exchange of India, and Stock Holding Corporation of India Limited.
The sovereign gold bond scheme was launched in November 2015 to reduce the demand for physical gold and shift a part of the domestic savings - used for the purchase of gold - into financial savings.