Sovereign Gold Bond Scheme December 2022: Interest Rate, Issue Price, Where To Buy

The Reserve Bank of India has set the issue price for the latest tranche of the Sovereign Gold Bond Scheme 2022-23 at Rs 5,409 per gramme of gold. The latest tranche is open for subscription for five days starting from Monday, Dec 19, 2022. Accordingly, the subscription will be open till Friday, December 23, 2023. Sovereign Gold Bonds or SGBs are issued by the RBI on behalf of the Centre as an alternative to buying physical gold.

Sovereign Gold Bonds can be defined as bonds, which are government securities expressed in terms of grams of gold. These are issued a couple of times in a given financial year. Under this scheme, investors are required to pay the issue price in cash and upon maturity, the investors can redeem bonds in cash. The lock-in period for the scheme is 8 years. The Sovereign Gold Bond scheme was first floated in 2015 by the Indian government.

If you’re interested in investing in the scheme, read the important information below.

For this time, RBI has fixed the issue price at Rs 5,409 per gram. The interest rate on these bonds is 2.50 per cent per annum on the amount of initial investments. If you invest in this bond, you’ll get interest paid in your bank account every six months. With this scheme, you get an exit option available in the fifth year.

If you’re interested in investing in Sovereign Gold Bonds, you can buy in denominations of one gram of gold and in multiples. Also, investors should buy a minimum of one gram of gold to invest in the SGB scheme. The maximum limit of subscription is 4 kg for individuals, and 4 kg for Hindu Undivided Families (HUF). However, if you’re from a trust or similar entities, the maximum limit is 20 kg this fiscal. To be noted, the government can revise this limit from time to time.

You can invest in SGBs through authorised post offices, Scheduled Commercial Banks (apart from Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), and stock exchanges NSE and BSE.

The RBI has fixed the issue price of the Sovereign Gold Bond at Rs 5,409, but if you buy the bond online, you can avail Rs 50 per gram discount on the bond.