RBI ANNOUNCES DATES FOR ISSUANCE OF SOVEREIGN GOLD BONDS

The Reserve Bank of India(RBI) after consultation with the lentre has announced the issues dates of the sovereign good scheme2020-21.There bonds will be issued in six tranches beginning 28 April and ending 08 september 2020. The RBI will come out withn 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 the fifth year.

The minimum permissible in inpermissible investment unit is 1 gram of gold and the maximum limit of subscription is 4 kg for individual 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 interest rateof 2.5% per annum. the interest is payable semi-annuallay."Sovereign gold bonds are considered one of the better ways of investing in gold as along with capital appreciation an investor gets fixed rate of interest.Apart from this, it is tax efficient as no capital gains is 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.