What is a Sovereign Gold Bond and How to Buy Sovereign Gold Bond From SBI?

As part of the Gold Monetisation Scheme, the government launched the Sovereign Gold Bond Scheme in November 2015. The RBI, in consultation with the GOI, opens the schemes issues for subscription in tranches. The Sovereign Gold Bond (SGB) Scheme 2021-22 - Series X subscription period began on Monday, February 28, 2022, and will end on March 4, 2022. The Reserve Bank of India has set golds price at Rs 5,109 per gramme (RBI). You will receive a Rs 50 discount if you apply online. nbsp;Here is how you can buy a sovereign gold bond from SBI. Sovereign gold bonds are RBI-mandated certificates issued in exchange for grams of gold, allowing individuals to invest in gold without worrying about the safety of their physical asset. Because gold prices are less volatile, individuals prefer sovereign gold bonds as a safe investment vehicle.Advertisement The Bond will have an 8-year term with exit options in the fifth, sixth, and seventh years that can be exercised on interest payment dates.In the case of joint ownership, the investment limit of 4 KG will be applied only to the first applicant.Under the Government Security Act of 2006, the gold bonds will be issued as Government of India stocks.The Bonds are eligible for Demat form.The redemption price will be in Indian rupees based on the simple average of the previous three working days closing prices of gold of 999 purity published by IBJA.The investors will be compensated at a fixed rate of 2.50 percent per year on the nominal value, payable semi-annually. The SGB is a better investment than physical gold.Storage risks and costs are reduced.SGB is free of issues like making charges and purity in the case of gold in jewellery.The bonds are held on the books of the RBI or in demat form, eliminating the risk of scrip loss, etc. SGB may be invested in by persons residing in India as defined by the Foreign Exchange Management Act of 1999. Individuals, HUFs, trusts, universities, and charitable organisations can all invest. Step 1: Login to SBI Net Banking with your credentials.Step 2: Select e-service from the main menuStep 3: Now, go to the Sovereign Gold Bond Scheme pageStep 4: Choose Register, select Terms and Conditions, and Now , Proceed.Step 5: Fill the registration form with required detailsStep 6: Select a Depository Participant, enter the DP ID and Client ID, finally click the Submit button. Step 1: Login to your SBI Net Banking with your login credentials.Step 2: Select e-service from the main menu.Step 3: Now, go to the Sovereign Gold Bond Scheme page.Step 4: Select the Terms and Conditions and click proceedStep 5: Enter the Subscription quantity and nominee details.Step 6: click on the Submit button.Step 7: Enter OTP received and click the Confirm button.