RBI ANNOUNCES  DATES  FOR  ISSUANCE OF SOSEREIGH GOLD BONDS

The  Reserve Bank of India (RBI) after consultation with the centre has announced the issue dates of the sovereign bond scheme 2020-21.There bonds will be issued in six tranches beginning 28 April and ending  8 September 2020.The  RBI will come out with an issue every month.Investors can buy these bonds through designated scheduled commercial banks (except small Finance Banks and Payment Banks) Stock Holding Corporation of India Limited and designated Post Offices.One can also buy these bonds through National Stock Exchange of India Limited and BSE Limited.Sovereign gold bonds have a tenure of eight years, with exit options are available from the fifth year.

The minimum permissible investment unit is 1 gram of gold and the maximum limit of subscription is 4 kg for individuals, 4 kg for the Hindu Undivided Family and 20 kg  for trusts and similar entities per fiscal.Sovereign gold bonds are issued by the RBI  on behalf of the government.Apart from the rise in gold prices, the investor gets a fixed rate of interest on the investment amount throughout the tenure of the fund.The government will pay an intrerest at the rate of 2-5z% per anmnum. The interest is payable semi- annually.

" Sovereign gold bonds are considered one of the better ways of investingin gold as along with capital appreciation an investor gets fixed rate of interest.Apart from this, it is tax efficient as no capital gains in charged in case of redemption on maturity.However it is good option only if one wants to invest in it for long-term as existing before maturity could be difficult.Sovereign gold bonds are a good way to ensure an investment that does not need physical storage of gold.But one has to keep in mind that this is a long term investment that does not need physical storage of  gold.But one has to keep in mind that this a long term investment unlike physical gold which can be sold immediately.