The Indian government, in collaboration with the Reserve Bank of India, has introduced the Sovereign Gold Bond Scheme 2024. This initiative allows investors in India seeking to invest in gold without the need for physical assets to take advantage of the scheme’s benefits. Under the 2024 scheme, the Reserve Bank of India has established the price of gold at INR 6,263 per gram. The subscription period for the Sovereign Gold Bond 2024 is scheduled to be open from February 12th to February 16th, 2024.
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Sovereign Gold Bond Scheme 2024
The Indian government has recently introduced Series IV of the Sovereign Gold Bond Scheme, allowing citizens across the country to invest in gold without acquiring physical assets but rather opting for digital assets. The Reserve Bank of India (RBI) has set the gold price for the scheme at INR 6,263 per gram. To incentivize online applications and digital payments, a discount of INR 50 per gram is offered to all applicants who choose to apply and make their payments through online channels.
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Sovereign Gold Bond Scheme Overview
| Name of Article | Sovereign Gold Bond Scheme |
| Launched By | Reserve Bank of India |
| Beneficiaries | Citizens of India |
| Aim | To decrease the purchase of gold |
Objective of Sovereign Gold Bond Scheme
The primary goal behind the launch of the Sovereign Gold Bond Scheme 2024 is to encourage investors to channel their investments into gold. Those wishing to explore digital gold investment can complete the application form for the Sovereign Gold Bond 2024. Interested investors must submit the subscription form by the deadline of 16th February 2024. The scheme has an 8-year tenure, but investors have the option of premature redemption after 5 years. This initiative enables Indian citizens to invest in gold without the necessity of holding physical assets.
Benefits of the Scheme
- It is a good option to keep SGB as there is no worry of storage and theft.
- The investors will get the guaranteedof the market value of gold during maturity and monthly interest.
- Through this scheme, the people will get an alternate investment option.
- SGBs will become profitable purchase for the investors.
- There will no storage and security issues of keeping the gold.
- An individual who invested will get money back at the current gold market rate.
- It is easy to invest in SGBs through banks, post offices etc.
- The minimum investment amount is one gram gold.
Sovereign Gold Bond Scheme Rate
The Reserve Bank of India has set the price of gold for the Sovereign Gold Bond at INR 6,263 per gram.
From where to Purchase Sovereign Gold Bonds
- Commercial banks
- The Stock Holding Corporation of India Limited (SHCIL)
- The Clearing Corporation of India Limited (CCIL)
- Designated post offices (as may be announced),
- Recognised stock exchanges, namely the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, will be allowed to sell SGBs directly or with the help of agents.
Important Dates
- Subscription for the Sovereign Gold Bond will be available from February 12th to February 26th.
- The issuance process is scheduled to commence on February 21st, 2024.
Eligibility Criteria
- The Foreign Exchange Management Act of 1999, set the eligibility criteria, citizen of India can take benefit of the scheme.
- Individuals, associations, trusts, HUFs who are Indian residents are allowed to invest in the scheme.
- Investments in Bonds can be done jointly with anothereligibleindividualsunder the scheme.
- Legal representatives or Parents are permitted to buy the bond on behalf of their kids or minors.
Required Documents
- Aadhar card
- Pan Card
- Tan Card
- Residence certificate
- Details of Bank
Procedure to Apply for Sovereign Gold Bond Scheme 2024
- Firstly, you have to go to the nearest bank branch
- After reaching you can ask for an application.
- After receiving the application, you have to fill out the Application by entering details.
- Now you have to attach the self-attested documents.
- At last, submit the filled application to the branch manager.
Steps to Apply for the Scheme
- Firstly, visit the official website of the portal.
- You will land on the home page of the website.
- Then you have to get the Application Form.
- Now you should fill out the application form by entering all the details.
- After that, you have to attach all required self-attested documents.
- At last, submit the application form.
Requirement of KYC in Sovereign Gold Bond Scheme
- KYC documents such as Voter ID, Aadhaar Card/PAN or TAN/Passport
- Interest on Gold Bonds will be eligible under the provisions of the Income Tax Act, 1961 (43 of 1961).
Process to make the payments?
- Individuals can make payments online with the help of UPI.
- If any individual wants to make physical purchases of SGBs, then they can make the payment by cash payment but only up to Rs 20,000. The payment can also be made through a demand draft or cheque.
FAQs
The minimum investment amount is one gram gold.
Citizen of India can take benefit of the Scheme.