Sovereign Gold Bonds are government securities issued by the Reserve Bank of India (RBI) on behalf of the Government of India. The sovereign gold bond scheme was launched in 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings into financial savings.
They are denominated in grams of gold and Investors can buy these bonds through exchange at issue price, when RBI announces a fresh sale or they can purchase it immediately through exchange at current price like any other security. Investors can redeem these bonds for cash upon maturity of the bonds or can sell it on exchange at current prices.
Sovereign Gold Bond Scheme 2020-21 & 2021-22
The sovereign bonds have been issued in various tranches from April 2020 to September 2021 as per the calendar specified below. Please note that the below prices are after giving the Rs. 50/- Discount on paying via Online Mode.
| S. No. | Tranche | Date of Subscription | Date of Issuance | Price ₹/gm |
| 1. | 2020-21 Series I | April 20-24, 2020 | April 28, 2020 | ₹ 4,589 |
| 2. | 2020-21 Series II | May 11-15, 2020 | May 19, 2020 | ₹ 4,540 |
| 3. | 2020-21 Series III | June 08-12, 2020 | June 16, 2020 | ₹ 4,627 |
| 4. | 2020-21 Series IV | July 06-10, 2020 | July 14, 2020 | ₹ 4,802 |
| 5. | 2020-21 Series V | August 03-07, 2020 | August 11, 2020 | ₹ 5,284 |
| 6. | 2020-21 Series VI | August 31-September 04, 2020 | September 08, 2020 | ₹ 5,067 |
| 7. | 2020-21 Series VII | October 12-16, 2020 | October 20, 2020 | ₹ 5,001 |
| 8. | 2020-21 Series VIII | November 9-13, 2020 | November 17, 2020 | ₹ 5,127 |
| 9. | 2020-21 Series IX | December 28th-1st Jan 2021 | January 5, 2021 | ₹ 4,950 |
| 10. | 2020-21 Series X | January 11-15, 2021 | January 21, 2021 | ₹ 5,004 |
| 11. | 2020-21 Series XI | February 1st-5th, 2021 | February 9, 2021 | ₹ 4,862 |
| 12. | 2020-21 Series XII | March 1st-5th, 2021 | March 9, 2021 | ₹ 4,612 |
| 12. | 2021-22 Series I | May 17th-21st, 2021 | May 25, 2021 | ₹ 4,727 |
| 12. | 2021-22 Series II | May 24th-28th, 2021 | June 01, 2021 | ₹ 4,792 |
| 12. | 2021-22 Series III | May 31st-4th June, 2021 | June 08, 2021 | ₹ 4,839 |
| 12. | 2021-22 Series IV | July 12th-16th, 2021 | July 20, 2021 | ₹ 4,757 |
| 12. | 2021-22 Series V | Aug 9th-13th, 2021 | Aug 17, 2021 | ₹ 4,740 |
| 12. | 2021-22 Series VI | Aug 30th-Sep 3rd, 2021 | Sep 7, 2021 | Awaited |
Interest Assured interest on the initial investment, payable half yearly. | Withdrawal Investor can exit the bond at the end of 5th , 6th or 7th year. |
Tax benefits Exempt from TDS or Capital Gains on redemption of the bonds. | Exchange Traded These bonds are listed and traded on the stock exchange. |
Eligibility
HUFs, Individuals, Trusts, Universities and Charitable institutions
Denomination
1 gm - 4 kgs per person in a fiscal year.
Tenure
8 years with exit option from 5th year onwards
Interest rate
2.50% p.a. payable semi-annually on the invested value.
Trading
Tradable on BSE and NSE
Collateral
SGB can be used as collateral for loans
Redemption
Simple average of gold rate - 3 days prior to redemption date
Tax Treatement
Exempt from Capital Gains Tax on redemption
| Particulars | Physical Gold | Gold ETF | Sovereign Gold Bond |
| Returns/ earnings | Lower than the real return on the gold due to making charges | Less than actual return the gold | More than actual return the gold |
| Safety | Risk of theft, wear/tear | High | High |
| Purity | The purity of gold remains a question | High as it is in electronic form | High as it is in electronic form |
| Gains | LTCG after 3 years | LTCG post after 3 years | LTCG post 3 years (No capital gain tax if redeemed after maturity) |
| As Loan Collateral | Accepted | Not accepted | Accepted |
| Tradability or exit formalities | Restrictive | Trade on stock exchange | Can be traded and redeemed from the 5th year with the government |
| Storage expenditures | High | Minimal | Minimal |
