According to the RBI press release, “Accordingly, the due date of the fourth and third premature redemption of the above tranches shall be on September 29, 2022 and September 30, 2022 respectively’.
Sovereign Gold Bonds make it simple for you to invest in gold without having to worry about having physical gold. Users hold the investments in demat form, and they have the option of redeeming them at maturity or earlier.
How is redemption calculated
The simple average of the closing gold price for 999 purity for the week (Monday through Friday) before the date of redemption, as announced by the India Bullion and Jewellers Association Ltd., shall serve as the basis for the redemption price of SGB (IBJA).
As a result, based on the simple average of the closing gold price for the week of September 19–23, 2022, the redemption price for the early redemptions due on September 29 and 30, 2022, shall be Rs. 4,952 per unit of SGB.
Minimum and maximum amount to invest in the Sovereign Gold Bond
The minimum amount to invest in the Sovereign Gold Bond is one gram, with a maximum of 4,000 grams per fiscal year for Individual/Hindu Divided Families and 20,000 grams for Trusts and Similar Entities as specified by the government from time to time.
What is the redemption process?
According to the RBI, this is the procedure involved in redemption
The investor will be advised one month before maturity regarding the ensuing maturity of the bond.
On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record.
In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/SHCIL/PO promptly.
Trading of bonds
According to HDFC Bank website, “The bonds are tradable on stock exchanges from the date to be notified by RBI. The bonds can also be sold and transferred as per provisions of Government Securities Act. However, the client would have to approach his / her broker for trading related requirements.”
1. What is the rate of interest and how will the interest be paid?
The Bonds bear interest at the rate of 2.50 per cent (fixed rate) per annum on the amount of initial investment. Interest will be credited semiannually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
2. Who are the authorized agencies selling the SGBs?
Bonds are sold through scheduled commercial banks and designated Post Offices either directly or through their agents like NBFCs, NSC agents, etc.
3. Is it necessary for me to apply through my bank?
It is not necessary for the customer to apply through the bank where he/she has his/ her account. A customer can apply through another bank or Post Office.
4. If I apply, am I assured of allotment?
If the customer meets the eligibility criteria, produces a valid identification document and remits the application money on time, he/she will receive the allotment.
5. When will the customers be issued Holding Certificate?
The customers will be issued Certificate of Holding on the date of issuance of the SGB. Certificate of Holding can be collected from the issuing banks/Post Offices/agents or obtained directly from RBI on email, if email address is provided in the application form.