Sovereign Gold Bond Scheme 2023-24

Santhosh Kumar 12/02/2024

Sovereign Gold Bond Scheme 2023-24 mind map
Recent News
Series III and IV issued
Dates
Series III: Dec 18-22, 2023; Issued on Dec 28, 2023
Series IV: Feb 12-16, 2024; Issued on Feb 21, 2024
Availability
Sold through
Scheduled Commercial Banks
Stock Holding Corporation of India Limited
Clearing Corporation of India Limited
Designated post offices
Recognized stock exchanges
Excluded Banks
Small Finance Banks
Payment Banks
Regional Rural Banks
Product Details
Issuer
Reserve Bank of India on behalf of Government of India
Eligibility
Resident Individuals
Hindu Undivided Families (HUFs)
Trusts
Universities
Charitable Institutions
Denomination
Multiples of grams of gold
Basic unit of One gram
Tenure
8 years
Exit option after 5th year on interest payment dates
Investment Details
Minimum Investment
1 gram of gold
Maximum Investment
4 KG for Individuals and HUFs
20 KG for trusts, Universities, and Charitable Institutions
Subscription Limit
Joint Holding
4 KG limit applies to first applicant
Financial Aspects
Issue Price
Determined by RBI annually
Based on average gold price of previous 3 working days
Interest Rate
2.50% per annum on nominal value
Credited semi-annually
Payment Methods
Cash (up to ₹20,000)
Cheque
Demand Draft
Electronic Banking
Taxation
Interest Taxable
As per Income Tax Act, 1961
Capital Gains Tax
Exempted on redemption for individuals
Indexation benefits for long-term capital gains
TDS
Not applicable on interest income
Trading and Redemption
Tradable
On stock exchanges within a fortnight of issuance
Redemption Price
Based on average closing price of gold of 999 purity
Additional Features
Nomination
Available except for minor investments
Collateral for Loans
Bonds can be used
Loan-to-value ratio as per RBI mandate
Commission
1% of total subscription to receiving offices
50% shared with agents or sub-agents
SLR Eligibility
Counted towards Statutory Liquidity Ratio for banks

The Sovereign Gold Bond Scheme 2023-24, initiated by the Government of India and managed by the Reserve Bank of India, offers a method for individuals and entities to invest in gold without the need to hold physical gold. It provides a fixed interest rate and tax benefits on capital gains, making it an attractive option for long-term investment in gold. The scheme includes a series of bonds with various subscription and redemption features, aimed at different investor needs and preferences.

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