The second tranche of the sovereign gold bond scheme 2021-22 opened for subscription on Monday (24 May). The window will remain open till 28. The government has decided to issue the bonds in six tranches from May 2021 to September 2021. The issue price for the second tranche of the sovereign gold bond scheme has been fixed at ₹4,842 per gram.
The country’s top lender State Bank of India (SBI) provides the option of buying SGBs online. In a tweet, SBI said, ” Planning to invest in Gold? Here are 6 golden reasons to invest in Sovereign Gold Bonds. SBI customers can invest in these bonds on onlinesbi.com.”
Here is why you should invest in Sovereign gold bonds:
1) The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.
2) Unlike physical gold, there is no issue of storage when it comes to investing in SGBs, hence they are more secure.
3) Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
4) There is no goods and services tax (GST) levied on sovereign gold bonds, unlike gold coins and bars. When you buy digital gold, you need to pay 3% of GST just like in the case of buying physical gold. Also, there are no making charges on SGBs
5) Sovereign gold bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to the ordinary gold loan mandated by the Reserve Bank of India (RBI) from time to time. The lien on the bond shall be marked in the depository by the authorised banks.
6) Sovereign Gold Bond Scheme was launched by the government in November 2015, under Gold Monetisation Scheme. Under the scheme, the issues are made open for subscription in tranches by RBI.
Investors can invest in SGBs through their Demat accounts or via online banking.
The government will offer a discount of ₹50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.
Here are the steps to invest in SGB via SBI:
-Log in to your SBI net banking account.
-Click on eServices and go to ‘Sovereign Gold Bond’.
-Select ‘terms and conditions and click on ‘proceed’.
-Fill the registration form. This is a one-time registration.
-Click on submit.
-Enter the subscription quantity and nominee details in the purchase form.
-Now, click on ‘submit.
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