Sovereign Gold Bond Scheme 2021-22

Sovereign Gold Bond Scheme 2021-22

Reserve Bank of India vide Press Release dated May12, 2021 informing that Government of India has vide its Notification No. G.S.R (E) dated May12, 2021 has announced the Sovereign Gold Bond Scheme 2021-22 to be issued in six tranches from May, 2021 to September, 2021 as per the calendar specified below.

Sr. No.


Date of Subscription

Date of Issuance


2021-22 Series I

May 17–21, 2021

May 25, 2021


2021-22 Series II

May 24–28, 2021

June 01, 2021


2021-22 Series III

May 31-June 04, 2021

June 08, 2021


2021-22 Series IV

July 12-16, 2021

July 20, 2021


2021-22 Series V

August 09-13, 2021

August 17, 2021


2021-22 Series VI

August 30-September 03, 2021

September 07, 2021


Eligibility for Investment:

The Bonds under this Scheme may be held by a Trust, HUFs, Charitable Institution, University or by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child or jointly with any other individual.



The Bonds will be issued in denominations of one gram of gold or multiples thereof.


Subscription Limit


The minimum limit of subscription for the Bonds issued shall be of one gram, and maximum limit of subscription per fiscal year shall be of 4 kg for individuals, 4 kgs for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the Government from time to time.


In case of joint holding, the above limits shall be applicable to the first applicant only.


The annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market.


The ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions.




The nominal value of Gold Bond shall be in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited, for the last 3 working days of the week preceding the subscription period.


The issue price of the Gold Bonds will be Rs.50.00 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.


Procedure for making application for subscription to Gold Bonds


Any person who is desirous of subscribing to the Gold Bonds shall apply to any receiving office (branch) in Form ‘A’ or in any other form as near as thereto, stating clearly the grams of gold, full name and address of the applicant/s.


Every application shall contain such documents and particulars as specified in the instructions contained in the Application Form.


Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to Individuals and other entities.


On receipt of an application, the receiving office (branch) shall issued an acknowledgment receipt in Form ‘B”, if all requirements of the application are fulfilled.


An incomplete application is liable to be rejected.


Date and form of issue of Gold Bonds.


The Gold Bonds shall be issued on the in the form of a Stock Certificate, as specified in Form ‘C’.


The Gold Bonds shall be eligible to be converted into Demat form.


Period of subscription

The subscription of the Gold Bonds under this Scheme shall be open as specified in Calendar of issuance.

The Central Government may, with prior notice, close the Scheme at any time before the specified period.


7. Receiving Offices

All our branches are authorized to receive applications for the bonds either directly or through agents.




The interest on the Gold Bonds shall commence from the date of issue and shall be paid at a fixed rate of 2.50 % per annum on the nominal value of the bond.


The interest shall be payable in half-yearly rests and the last interest shall be payable along with the principal on maturity.


Payment Options


All payments for Gold Bonds shall be accepted in Indian Rupees through cash (up to a maximum or Rs.20000.00) or demand draft, or cheque, or electronic banking.


Where payment is made through cheque or demand draft, the same shall be drawn in favour of the receiving office (Bank)




The Gold Bonds shall be repayable on the expiration of eight years from the date of the issue of the Bonds.

Provided that premature redemption of Gold Bonds may be permitted after fifth year from the date of issue of Bonds and such repayments will be made on next interest payment date.


On maturity, the Gold Bonds shall be redeemed in Indian Rupees and the purity of previous 3 working days, published by the India Bullion and Jewelers Association Limited.


The RBI/Depository shall inform the investor one month in advance, about the date of maturity of the Bond.


Eligibility for Statutory Liquidity Ratio

Bonds acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards Statutory Liquidity Ratio.


Loan against Bonds.


The Gold Bonds issued under this Scheme may be used as collateral security for availing any loan, Such loans could be granted by marking lien on SGB appropriately.


The Loan to Value ratio as applicable to any ordinary gold loan mandated by the Reserve Bank of India shall also apply to the Bonds issued under this Scheme.

Note:- Loan against SGB would be subject to decision of the Bank/Financing Agency, and can not be inferred as a matter of right.


Tax Treatment

The interest on the Gold Bond shall be taxable as per the provisions of the Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of these bonds to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on transfer of bond.




Nomination of and its cancellation shall be made in Form ‘D’ and Form ‘E’, respectively, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities regulations, 2007, published in part III, Section 4 of the Gazette of India dated the 1st December 2007.


An individual Non-Resident Indian may get the security transferred in his name on account of his being a nominee of a deceased investor.

The Non-Resident investor shall need to hold the security till early redemption or till maturity.

The interest and maturity proceeds of the investment shall not be repatriable.


Transfer of Gold Bonds.

The Gold Bonds issued in the form of Stock Certificate are transferable by execution of an instrument of transfer as in Form ‘F’, in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulations, 2007, published in part III, Section 4 of the Gazette of India dated the 1st December 2007.


Trading of Gold Bonds

The Gold Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.

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