Sovereign Gold Bond Scheme in SBI
Sovereign Gold Bonds are government securities, which are weighed in grams only and these are alternatives for keeping physical gold. Fiscal specialists need to reimburse the issue cost in cash furthermore the bonds will be re-cashed in real money on maturity. Bonds will be issued by the RBI for Central Government.
The gold amount for which an investor has paid is ensured; since he/she gets the constant market cost during redemption/untimely reclamation. The Sovereign Gold Bonds present a better option to hold gold in its physical structure. The dangers and expenses of gold storage are disposed of. Investors are guaranteed of the gold price during maturity as well as periodical interest. Sovereign Gold Bonds are free from concerns such as making charges as well as impurity on gold in jewelry form. These bonds are kept in Demat form or in the RBI books eradicating danger of any kind.
Shri Arun Jaitley, the Union Finance Minister requested to each of the banks that they should try their earnest attempts to contact prospective investors to put their money into the Sovereign Gold Bonds’ Second tranche, which will remain open from 18-22 January, 2016. He said that it is an alluring opportunity for the prospective investors. Shri Arun Jaitley was speaking with the CMDs of all banks through live video conferencing on 14th January 2016. He additionally conversed about the banks’ readiness for the Sovereign Gold Bond Scheme’s second tranche. Shri Arun Jaitley stated that the Central Government is eager to extend the plan in the following tranches also. Each of the banks guaranteed to activate the network of their branch to illuminate the prospective investors about the upsides of Sovereign Gold Bonds.
To build the mindfulness among the depositors, the Central Government is proceeding with Media campaigns on FM radio, AIR radio, print media as well as SMS campaigns. All information is likewise accessible on the site www.finmin.nic.in/swarnabharat and on 18001800000 (Toll Free Number).
The Initial Tranche of the SGB (Sovereign Gold Bond) was issued for the Central Government by the RBI at all branches of the commercial banks and assigned post offices by its system of e-kuber from 5-20 November, 2015. A sum of about 62169 applications was received for an aggregate subscription of 915.953KG gold adding about Rs 246.20 Crores by all the Banks as well as Post Offices.
Previously, the SGB scheme was launched by the Central Government on fifth November last year. The primary goals of the plan is to diminish the physical gold demand and shift a section of the imported gold each year for the purpose of investment into the financial savings via Gold Bonds.
SGB scheme was issued by the RBI for the Central Government on disbursement of the required sum in rupees and is denominated only in grams. The SG Bonds are confined to be sold to only Indian residents, HUFs, Universities, trusts, and charitable foundations. Least passable investment is two grams to be paid only in rupees. The highest quantity subscribed by any entity won’t be over 500 grams for each individual per monetary year (April to March). Central Government has settled the interest rate as 2.75 % for 2015-16, payable on every six month. The SGB will be accessible both in paper form and Demat.
The Bond rate will be finalized on the closing price of the simple average for pure 999 gold of the earlier week, the India Bullion & Jewelers Association published. The SGB will be accessible at both Banks as well as Post Offices. The tenure of the Bonds will be eight years with the exit alternative from the fifth year and onwards to be practiced on the dates of interest payment. KYC standards will be similar like before and exception from the capital gain tax will likewise be accessible. On the maturity of the bond, an investor will acquire the proportional rupee estimation of gold along with the current cost of the gold.
Gold Bond Scheme in SBI
State Bank of India is one the first bank to offer these bonds and uou can get the details about the scheme in their official website. The second phase of gold bond in sbi is on and make full use of it.