SGB Feb 2024 Series: The SGBs have a tenure of eight years. However, investors can apply for premature withdrawal after five years.(Representative image)
Sovereign Gold Bonds 2023-24 Series IV opened for subscription on February 12. Know how and where to buy SGBs in both online and offline modes.
Sovereign Gold Bond 2024 Buy Online: The Sovereign Gold Bonds (SGBs) 2023-24 Series IV is available for subscription starting Monday, February 12. It will remain open until Friday.
This tranche’s issuance date will be February 21 as Sovereign Gold Bonds are normally allocated seven days after the subscription period comes to an end.
Issued by the Reserve Bank of India (RBI) on behalf of the central government, SGBs are a substitute for physical gold. They are government securities denominated in grams of gold.
Buying Sovereign Gold Bonds
SGBs are sold via branches of various national banks, scheduled private banks, scheduled foreign banks, designated post offices, Stock Holding Corporation of India Ltd. (SHCIL) and authorised stock exchanges.
According to the RBI, the nominal value of the bond is decided on the simple average of the closing price for gold of 999 purity, as published by the India Bullion and Jewellers Association Ltd (IBJA), of the last three working days of the week preceding the subscription period. The nominal value has been fixed at Rs 6,263 per gram of gold based on this calculation.
“The Government of India, in consultation with the Reserve Bank, has decided to offer a discount of Rs 50 per gram less than the nominal value to those investors applying online and making the payment against the application through digital mode. For such investors, the issue price of Gold Bond will be Rs 6,213 per gram of gold,” the RBI statement read.
Whether you are a seasoned investor or a first-timer, this step-by-step guide will help you navigate the process of acquiring these bonds online:
- Step 1: Start by logging into your net banking account. Once you are securely connected, proceed to the next step.
- Step 2: On your net banking portal, look for the ‘eServices’ section. Click on it to explore the available options.
- Step 3: Among the various services listed, find the ‘Sovereign Gold Bond’ option. Select it to proceed further.
- Step 4: Take a moment to review the terms and conditions laid down by the central bank. Ensure that you understand the details thoroughly.
- Step 5: Once you are satisfied with the terms, click on the ‘Proceed’ option.
- Step 6: Complete the registration process and click on ‘Submit’.
- Step 7: Enter the gold units that you wish to buy and share the nominee details.
- Step 8: Click on ‘Submit’ button.
The SGBs have a tenure of eight years. However, investors can apply for premature withdrawal after five years.
The maximum limit of subscription is 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by Centre from time to time per fiscal year (April – March).