Sovereign Gold Bond Scheme 2023-24 Series II; Complete guide (Everything you should you know)

Sovereign Gold Bond Scheme 2023-24

has been launched on 11th Sept 2023 by RBI. Here we are giving you a complete guide about SGB and why you should positively consider to purchase it. We have tried to get all your questions answered through this.

1. What is Sovereign Gold Bond Scheme 2023-24:

SGBs or Sovereign Gold Bond are Government securities denominated in grams of gold. They are issued by Reserve Bank on behalf of Govt. Of India.

2. How to purchase SGB:

Investors can opt for buying the SGB from any of the following entities:

  • Designated Post Offices.
  • The Stock Holding Corporation of India Ltd.
  • Recognized stock exchanges of India. like NSE or BSE
  • Schedule commercial banks

 3. What is current SGB Tranche Period:

Currently RBI has launched Tranche II of 2023-24 starting from September 11, 2023 upto September 15, 2023.

Sr. No Tranche Date of Subscription Date of Issuance
1 2023-24 Series II September 11 – September 15, 2023 September 20, 2023


4. What is current Sovereign Gold Bond Scheme 2023-24 Price:

Current Price of SGB is Rs. 5923.00 per gram of gold.

5. Can  I buy it online without visiting any branch:

Almost every bank provide online facility to purchase SGB through online mode.

6. Is there any discount in buying online:

Govt provides Rs. 50/- per gram discount if customer buys SGB online. So effective price of SGB in this tranche will be Rs 5873.00 if applied online.

7. What is the intt Rate offered :

The SGB offers interest rate at 2.5 % (Fixed) per annum on the amount of initial investment. The interest will be credited half yearly to the bank account of the investor.

8. Who all can buy SGB:

Any person who is resident of India are eligible for purchase SGB. These will include Individual, HUFs, Trusts, Universities and charitable institutions.

9. Can Minor invest in Sovereign Gold Bond Scheme 2023-24

Yes application for minor has to be made by his guardian/ parents.

10. What if I have turned Non-resident after investing in SGB

The investor can hold the SGB till maturity if he turned Non-resident after purchasing the SGB.

11. How much Minimum and Maximum SGB that can be bought.

Minimum of 1 gram and maximum of 4 Kgs for Individuals, HUFs and  20 Kgs for trust and similar entities notified by govt from time to time per fiscal year (Apr -Mar).

12. What is the time period of SGB:

The SGB will have an 8-year tenor and an exit option that can be used on interest payment days that begins in the fifth year. The nominal value will be paid to investors at a fixed rate of 2.50 percent annually, payable every other year. SGB online subscription is only available to single A/C holders.

13. What is the risk of Holding SGB:

There is no risk in Holding SGB as it is issued by RBI and backed by Government.

14. How much tax to be paid on SGB Intt:

The interest of 2.5 % earned on SGB is taxable for investors. It gets added to income and is taxed as per individual slabs. Further, if SGBs are sold before maturity, they are subject to Capital Gain tax and if held till maturity, the gains are tax free.

15. What if I sold it before 3 Years:

If redeemed before 3 years, it will be treated as short term capital gains.

16. What are the disadvantages of having SGB:

The only disadvantage of having SGB is that the returns on SGBs are not guaranteed and depend on the prevailing market price of gold at the time of sale. There is a lock-in period of 5 years, so you cannot exit your investment before then.

17. How to get its Certificate after purchasing SGB:

The customer will be issued Certificate of holding on the date of issuance of SGB and it can be collected from the issuing Banks/ SHCIL / Post offices or Designated stock exchanges agents from where the SGB has been purchased.

18. What will I get on redemption of Sovereign Gold Bond Scheme 2023-24: 

On the redemption of Gold bond, they can be redeemed at redemption price which is based on simple average of the closing price of gold of 999 purity of the previous three business days from the repayment date published by the Indian Bullion and Jewellers Association Limited.

19. Will it be in Demat form or not:

SGB will be in Demat Form.

20. How will the redemption amount will be received:

Investor will be issued one month advance notice informing them about the bond maturity. On the date of maturity, the proceeds shall be credited to the investors bank account mentioned at the time of purchase.

21. What do I have to do if I want to exit my investment?

Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges, if held in demat form. It can also be transferred to any other eligible investor.

22. Whether nomination facility is available for these investments?

Yes the nomination facility is available in case of SGB bonds.

23. Can I buy it if I already have purchased during last Tranches :

Yes you can buy SGB every FY as the limit for individual/ trust has been fixed as 4 kg/ 20 kg per financial year.

24. Can we take loan from bank against SGB held by us

Yes, the banks are giving facility to take loan against SGB as per their respective policies. Generally the loan is given as personal loan for legitimate purposes.

25. Where are the online links for purchasing Sovereign Gold Bond Scheme 2023-24 Bond:

Every banks have online facility to buy SGB. You can buy SGB by logging into their Internet banking services and purchase the same comfortably sitting at your home.

Following links are given for some of the major banks:

  1. PNB Bank
  2. HDFC Bank
  3. ICICI Bank
  4. SBI
  5. Axis Bank

If you want to apply offline mode, you may download form from below link and submit it to your nearest bank after duly filling it. Form Link

So what are your waiting for. Rush to your nearest bank and get your share of SGB for a secure and fruitful investment.

#Sovereign Gold Bond Scheme 2023-24

Read More: Procedure to open online current account in PNB


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