Sovereign Gold Bond 2023-24 Series III Concludes Today | Step-by-Step Guide on How to Purchase

The Sovereign Gold Bond (SGB) Scheme for the 2023-24 Series III, which commenced on Monday, is set to conclude today. As per the Reserve Bank of India (RBI) announcement, these gold bonds, boasting 999 purity, are priced at ₹6,199 per gram for this particular series. The subsequent series is scheduled for February 12-16.

Investors opting for online application and utilizing digital payment methods can avail a ₹50 discount per gram, reducing the issue price to ₹6,149 per gram. This strategic move by the government, in collaboration with the RBI, aims to encourage digital transactions in gold investments. Previously, Series I ran from June 19-23, followed by Series II from September 11-15.

Sovereign gold bonds, functioning as government securities denominated in grams of gold, provide an alternative to physical gold ownership. Investors make cash payments for the issue price, and the bonds mature for cash redemption. Issued by the Reserve Bank on behalf of the Government of India, these bonds play a crucial role in diverting a portion of domestic savings from physical gold purchases into financial savings.

According to the Ministry of Finance, the duration of the sovereign gold bonds spans eight years, with an option for early redemption after the fifth year. This option can be exercised on the due date of the interest.

Steps to Purchase SGBs Online through Banking Platforms:

1. Log in to your respective online banking account.
2. Navigate to the main menu, select 'e-Service,' and then click on 'Sovereign Gold Bond.'
3. For new customers, click 'Register.' Review and accept the terms and conditions specified by the RBI before proceeding.
4. Provide all necessary details regarding the SGB scheme and information about your depository participant from either CDSL or NSDL, depending on your demat account's hosting.
5. Complete the online registration form and submit it.
6. Upon successful registration, access the purchasing option either from the header link/section or by selecting 'Purchase.'
7. Input the quantity you wish to subscribe to and provide nominee details if required.
8. To finalize the process, enter the one-time password (OTP) sent to your registered mobile number.

Ways to Purchase SGBs:

1. Commercial Banks: Investors have the option to buy gold bonds through commercial banks.
2. Net Banking Facilities: SGBs can be invested in online via net banking facilities.
3. Mobile Banking App: Your bank’s mobile app provides another avenue for SGB investment.
4. Physical Purchase: Visit a designated post office or bank branch to physically buy SGBs. Complete the application form, specify the units, and enclose a cheque or demand draft along with your Aadhaar and PAN card.
5. RBI Retail Direct Website: The RBI Retail Direct website offers a platform for SGB investments.
6. Stock Holding Corporation of India Limited (SHCIL): Investors can also purchase gold bonds through SHCIL.
7. Stock Exchanges: Reputable stock exchanges, including the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), facilitate the purchase of gold bonds for interested investors.

This comprehensive guide aims to assist potential investors in navigating the process of acquiring Sovereign Gold Bonds through various channels.