Tag: Sovereign Gold Bond

67 Tranches of Sovereign Gold Bonds Issued by Govt Until FY25

The government has issued a total of 67 tranches of Sovereign Gold Bonds (SGBs) amounting to 146.96 tonnes of gold till 2024-25, Parliament was informed on Tuesday.

The outstanding value as on March 20, 2025, on issue price is Rs 67,322 crore for 130 tonnes of gold, Minister of State for Finance Pankaj Chaudhary said in a written reply.Redemption of SGBs is based on the prevailing market price, he said.

The government has maintained a Gold Reserve Fund (GRF) in the Public Account where the price and interest differential amount is credited in time, he said.The SGBs, in addition to other borrowing instruments, have been an instrument for raising resources for financing fiscal deficit, it said. However, in addition to these, SGBs also served the purpose of savings/financial instruments as an alternative to physical gold, he said.

Due to the recent gold price volatility and global economic headwinds, this form of borrowing has become relatively expensive.“Therefore, based on maturing and deepening of Indian G-Sec market, which helped in mobilising relatively low-cost borrowing, resources were not raised through SGBs in FY 2024-25,” he said.

Replying to another question, Chaudhary said, more than 52.07 crore loans have been sanctioned, as on February 28, 2025, under Pradhan Mantri Mudra Yojana (PMMY), since the launch of the Scheme.The average non-performing assets (NPAs) for amount disbursed is 2.21 per cent (as on December 2024) as per data uploaded by Member Lending Institutions (MLIs) on the Mudra portal, he said.

Attention PNB Bank Customers: PNB Issues Critical Notice for Sovereign Gold Bonds or RBI Bonds

Punjab National Bank (PNB) has released an essential advisory for customers holding Sovereign Gold Bonds (SGB) or RBI Bonds. This announcement, made via the bank’s X Handler on December 9, specifically targets investors with pending bond interest payments or those whose bonds have matured or are approaching maturity. PNB encourages these customers to promptly visit their respective branches to verify and update their bank account details to prevent any potential payment issues.

SGBs are securities offered by the Reserve Bank of India (RBI) on behalf of the Government. They provide an alternative to physical gold ownership, aimed at reducing the demand for imported physical gold. SGBs are denominated in grams of gold, with a minimum investment of 1 gram and a maximum of 4 kg allowed per fiscal year. The bonds have an eight-year term, with an option to exit after the fifth year, and carry a fixed annual interest rate of 2.5%, payable every two years.

Key Highlights of the Advisory:

  • Customers holding SGBs or RBI Bonds must verify that their registered bank account details are accurate. PNB stressed that payment delays could occur if the account number is incorrect or if the registered account has been closed.
  • For customers with unclaimed interest or principal amounts older than six years, it is essential to follow guidelines set by the Reserve Bank of India (RBI). These guidelines can be accessed on the RBI or PNB’s official website.
  • PNB specifically advises customers against closing their operative accounts before redeeming their bonds. Those needing to close accounts for urgent reasons should provide alternative bank account details before initiating the closure. Failure to comply may lead to non-credit of redemption amounts and interest payments.

Importance of This Advisory:

This advisory is crucial for investors to avoid complications or delays in receiving their payments. PNB has clarified that it will not be responsible for errors in bank account details or for issues arising from the premature closure of accounts. Customers are encouraged to confirm their account information and follow the advisory to ensure a smooth experience. For assistance, customers can contact PNB’s toll-free numbers, 1800 1800 and 1800 2021, for queries regarding their investments or the advisory.

RBI’s Sovereign Gold Bond: Profit Doubled by Latest Announcement

If you had invested in the first tranche of Sovereign Gold Bond 8 years ago, then there is good news for you. The Reserve Bank of India (RBI) has released the final redemption price on maturity of the first Sovereign Gold Bond (SGBs) issued on 5 August 2016. RBI has fixed this price at ₹ 6,938 per gram. In August 2016, it was issued at a price of ₹ 3,119 per gram. RBI has also fixed the final redemption date for this as 5 August 2024 (Monday).

The price of Sovereign Gold Bond is determined by the India Bullion and Jewelers Association (IBJA) on the basis of 999 purity gold. It is determined on the basis of the average closing price in the week before the subscription for SGBs opens.

One scheme, many benefits

SGBs holders also get 2.5% interest on it on an annual basis. In this way, investors get the benefit of interest along with the rising price of gold. Apart from this, there is also the benefit of tax exemption on the amount received on redemption. This is the reason why Sovereign Gold Bond is seen as an attractive investment option for investors. When the government announced this scheme, the annual interest was fixed at 2.75%, which was later reduced to 2.5%. Investors can also take a loan by keeping this as collateral in a bank or any other financial institution.

Total benefit to investors

Based on the initial investment, this interest is paid twice a year in two different parts. In this way, investors are getting a total benefit of 144% on the Sovereign Gold Bond issued 8 years ago. If seen on an annual basis, this return is about 12% CAGR. The final interest on SGBs will be issued directly in the bank account of the investors.

Will the Sovereign Gold Bond Scheme be closed?
It has been discussed in many media reports for some time that the Narendra Modi government is preparing to close this Sovereign Gold Bond Scheme. Information received by CNBC-TV18 from sources has told that the final decision on this will be taken in September. A decision was taken on this in the RBI meeting regarding borrowing in September 2024.

Sovereign Gold Bond Scheme 2023-24 (Series IV) Subscription Details Update

Sovereign Gold Bond Scheme 2023-24 (Series IV) will open for subscription from 12th-16th February, 2024: In terms of Government of India Notification No.4(6)-B(W&M)/2023 dated December 08, 2023, Sovereign Gold Bonds 2023-24 (Series IV) will be opened for subscription during the period February 12-16, 2024 with Settlement date February 21, 2024. The issue price of the Bond during the subscription period shall be ₹6,263 (Rupees Six Thousand Two Hundred Sixty Three only) per gram, as also published by RBI in their Press Release dated February 09, 2024.

The Government of India in consultation with the Reserve Bank of India has decided to allow discount of ₹50 (Rupees Fifty only) per gram from the issue price 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 ₹6,213 (Rupees Six Thousand Two Hundred Thirteen only) per gram of gold.

Sovereign Gold Bond: Opportunity To Buy Cheap Gold. Know Who Will Get Discount

The opportunity to buy gold at cheap rates has opened from today. If you also want to buy gold at cheap rates, then you can invest money in Sovereign Gold Bonds. From today i.e. February 28, investment in sovereign gold bonds is open and money can be invested here till March 4. Sovereign Gold Bond is issued by the Reserve Bank of India. RBI has fixed its price at Rs 5,109 per gram. RBI said that the subscription of Sovereign Gold Bond Scheme 2021-22 Series X is going to open from February 28.

Online investors will get discount

The Government of India, in consultation with the Reserve Bank, has decided to give a discount of Rs 50 per gram less than the nominal value to the investors applying online. “The issue price of the gold bond for such investors will be Rs 5,059 per gram,” the RBI said. Explain that the issue price of Series IX, which was open for subscription during January 10-14, was Rs 4,786 per gram of gold.

How to invest

The Finance Ministry said that this bond will be issued to banks (except small finance banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), post offices and recognized stock exchanges (NSE and BSE).

How much can you invest

In Sovereign Gold Bond, you will have minimum possible investment of 1 gram of gold. The ministry said that the investors would be paid a fixed rate of 2.5 per cent per annum on the face value. The maximum investment limit per year in Sovereign Gold Bond will be 4 kg for individual and HUF, 20 kg for trust and other such entities.

RBI published Sovereign Gold Bond Scheme 2021-22–Series-IV- Issue price

In terms of Government of India Notification No.4(5)-B(W&M)/2021 dated May 12, 2021, Sovereign Gold Bonds 2021-22 (Series IV) will be opened for the period July 12-16, 2021 with Settlement date July 20, 2021. The issue price of the Bond during the subscription period shall be Rs 4,807 (Rupees Four thousand eight hundred seven only) – per gram, as also published by RBI in their Press Release dated 9th July, 2021.      

The Government of India in consultation with the Reserve Bank of India has decided to allow discount of Rs 50 (Rupees Fifty only) per gram from the issue price 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 4,757 (Rupees Four thousand seven hundred fifty seven only) per gram of gold.