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Gold bonds will be repaid at the end of eight years from the date of the Gold Bond issue (2016-17 series IV for Trench 17 March, 2025).
In November 2015, the sovereign gold bonds are government securities engaged in gold village. Plan to discontinue the plan.
The Reserve Bank of India (RBI) has declared the fixed rate for the redemption of sovereign gold bonds (SGB) from the 2016-17 Series IV Trench for Rs 8,624 per unit. The last redemption date of the installment released on March 17, 2017 will be released on March 17, 2025.
The RBI said in a press release on 13 March, “The redemption price for the final redemption on March 17, 2025, the SGB will be Rs 8,624 per unit based on the simple average of the price of gold on 10-13 March, 2025, (published by the Indian Bullion and Jewelers Association),” RBI said in a press release on 13 March.
This week was a holiday due to Holi, as a cut as a cut as on March 14, 2025.
The Central Bank said that gold bonds would be paid to the gold bond (March 17, 2025, 2016-17 Series IV Trench) at the end of eight years from the date of the issue.
What are sovereign gold bonds?
In November 2015, the sovereign gold bond (SGB) is government securities engaged in gold village. They offer options to keep physical gold. Investors will have to pay the price issued in cash and the bonds will be redeemed in cash on maturity. SGBs are issued by the government by the RBI.
Government plans to discontinue the Sovereign Gold Bond Scheme
The government is planning to discontinue the sovereign gold bond scheme.
During a media conversation after Budget 2025, Finance Minister Nirmala Sitarman said that the government is considering closing the SGB scheme in 2025. After him, Economic Affairs Secretary Ajay Seth also said that SGBs are proving to be an expensive lending for the government.
Therefore, there will be no other issue of SGB moving forward.
What are its main features?
Eligibility: Only resident individuals, Hindu undivided families (HUF), Trust, University and Charitable Institutions can buy sovereign gold bonds.
Sampolation: Bonds are represented in the multiples of gold gram (S) with an original unit of one gram.
Tenure: After the 5th year, SGBS has an eight -year holding period with premature redemption options, the date on which interest is payable.
Minimum and maximum limit for buyers: A person can buy minimum 1 gram of gold in SGB, while the maximum limit is 4 kg for individuals, 4 kg for HUF, and 20 kg for trusts and similar institutions for financial year (April-March). In the case of a joint holder, the 4 kg investment limit applies only to the first applicant.
Response Price: The redemption will be in the Indian rupee, based on a simple average of the closing value of gold of 999 purity, which is among the last three working days published by Ibza Limited.
Interest Rate: Investors are compensated at a fixed rate of 2.50 percent per year payable at a nominal price per year.
KYC Criteria: Know that your gray criteria are the same for the purchase of physical gold.
Collection: SGB can be used as collateral for debt.
tax treatment: The interest on SGBS will be taxable as per the provision of the Income Tax Act, 1961 (43 of 1961). A person has been exempted from the capital gains tax arising on the redemption of SGB. The transfer of long -term capital gains arising to any person on the transfer of SGB will be provided index benefits.
Tradeability: SGB is eligible for trading.
