Centre Launches Sovereign Gold Bonds Scheme 2023-24: All You Need to Know

The central government has rolled out its latest offering in the financial market with the launch of the Sovereign Gold Bonds (SGB) Scheme 2023-2024. This new investment opportunity, spanning two tranches in December 2023 and February 2024, provides a comprehensive avenue for investors. Here's a detailed overview of the scheme:

Tranches and Schedule: The Sovereign Gold Bonds Scheme 2023-2024 comprises two tranches - Series III in December 2023 and Series IV in February 2024. The subscription period for Series III is scheduled from December 18 to 22, while Series IV will be open for subscription from February 12 to 16.

Objective and Background: Introduced in 2015, the primary objective of the Sovereign Gold Bonds scheme is to encourage financial savings across all sections of society by offering an alternative to physical gold investment. This initiative aligns with the government's broader economic strategy.

Issuing and Sale Channels: The bonds, once issued, will be available for purchase through scheduled commercial banks, Stock Holding Corporation of India (SHCIL), Clearing Corporation of India (CCIL), select post offices, and stock exchanges.

Features of Sovereign Gold Bonds Scheme 2023-24:

• Investment Entities: Only resident individuals, Hindu Undivided Families (HUFs), Trusts, Universities, and Charitable Institutions are eligible to participate.
• Denomination: The bonds will be denominated in grams, with one gram as the basic unit.
• Tenure: The overall tenure of the bond is 8 years, with the option of premature redemption after the 5th year.
• Minimum Investment: Each entity is required to invest a minimum of one gram.
• Maximum Subscription Limit: The limit is set at 4 kg for individuals, 4 kg for HUF, and 20 kg for trusts and similar entities.

Subscription and Payment: Investors interested in the Sovereign Gold Bond scheme can make payments through cheque, demand draft, electronic banking, and cash (up to ₹20,000). The issue price will be determined by BJA (India Bullion and Jewellers Association) in the opening week of the respective tranche.

Interest Rate and Taxation: The gold bonds will carry a fixed interest rate of 2.5 percent per annum, payable semi-annually. This interest is subject to taxation as per the Income Tax Act of 1961. Additionally, these bonds can serve as collateral for obtaining a loan.

As the government opens this avenue for investment, investors are encouraged to explore the Sovereign Gold Bonds Scheme 2023-24, which not only promotes financial prudence but also offers a unique and secure investment opportunity in the ever-evolving financial landscape.