Reserve Bank of India
Sovereign Gold Bond Scheme 2022-23
Date : Jun 16, 2022
The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds in tranches as per the calendar specified below:
| S. No. | Tranche | Date of Subscription | Date of Issuance |
| 1. | 2022-23- Series I | June 20- June 24, 2022 | June 28, 2022 |
| 2. | 2022-23 Series II | August 22 –August 26, 2022 | August 30, 2022 |
The Sovereign Gold Bonds (SGBs) will be sold through Scheduled Commercial banks(except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL),Clearing Corporation of India Limited (CCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The features of the Bond are as under:
|
Sl. No. |
Item | Details |
| 1 | Product name | Sovereign Gold Bond Scheme 2022-23 |
| 2 | Issuance | To be issued by Reserve Bank of India on behalf of the Government of India. |
| 3 | Eligibility | The SGBs will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions. |
| 4 | Denomination | The SGBs will be denominated in multiples of gram(s) of gold with a basic unit of one gram. |
| 5 | Tenor | The tenor of the SGB will be for a period of eight years with an option of premature redemption after 5th year to be exercised on the date on which interest is payable. |
| 6 | Minimum size | Minimum permissible investment will be One gram of gold. |
| 7 | Maximum limit | The maximum limit of subscription shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time. A self-declaration to this effect will be obtained. The annual ceiling will include SGBs subscribed under different tranches, and those purchased from the Secondary Market, during the fiscal year. |
| 8 | Joint holder | In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only. |
| 9 | Issue price | Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week preceding the subscription period. The issue price of the SGBs will be less by ` 50 per gram for the investors who subscribe online and pay through digital mode. |
| 10 | Payment option | Payment for the SGBs will be through cash payment (upto a maximum of `20,000) or demand draft or cheque or electronic banking. |
| 11 | Issuance form | The SGBs will be issued as Government of India Stock under Government Securities Act, 2006. The investors will be issued a Certificate of Holding for the same. The SGBs will be eligible for conversion into demat form. |
|
12 |
Redemption price | The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity, of previous three working days published by IBJA Ltd. |
| 13 | Sales channel | SGBs will be sold through Commercial banks, Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices (as may be notified) and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited, either directly or through agents. |
| 14 | Interest rate | The investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value. |
| 15 | Collateral | Bonds can be used as collateral for loans. The loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated by the Reserve Bank from time to time. |
| 16 | KYC documentation | Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required. Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to individuals and other entities. |
| 17 | Tax treatment | The interest on SGBs shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual is exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond. |
| 18 | Tradability | SGBs shall be eligible for trading. |
| 19 | SLR eligibility | SGBs acquired by the banks through the process of invoking lien/hypothecation/pledge alone, shall be counted towards Statutory Liquidity Ratio. |
| 20 | Commission | Commission for distribution of the bond shall be paid at the rate of one percent of the total subscription received by the receiving offices and receiving offices shall share at least 50 percent of the commission so received with the agents or sub agents for the business procured through them. |
(Yogesh Dayal)
Chief General Manager
Press Release: 2022-2023/374
***
Reserve Bank of India
RBI/2022-23/72
IDMD.CDD.No.S789/14.04.050/2022-23
June 16, 2022
Scheduled Banks (as per the list attached),
Designated Post Offices (as per the list attached)
Stock Holding Corporation of India Ltd.
National Stock Exchange of India Ltd, Bombay Stock Exchange Ltd.
Clearing Corporation of India Ltd.
Madam/Dear Sir,
Sovereign Gold Bond (SGB) Scheme 2022-23
Government of India, vide its Notification No F.No4.(6)-B (W&M)/2022 dated June 15, 2022, has announced Series I and II of Sovereign Gold Bond Scheme 2022-23. Under the Scheme, there will be a distinct series (Series I and II) for every tranche. The terms and conditions of the issuance of the Bonds shall be as per the above notification.
2. Date of Issue
The bonds shall be issued as per the details given below:
| Sr. No. | Tranche | Subscription Period | Date of Issuance |
| 1. | 2022-23 Series I | June 20-24, 2022 | June 28, 2022 |
| 2. | 2022-23 Series II | August 22-26, 2022 | August 30, 2022 |
3. Period of subscription
The Subscription of the Gold Bonds under this Scheme shall be open (Monday to Friday) on the dates specified above, provided that the Central Government may, with prior notice, close the Scheme at any time before the period specified above.
4. Application
Subscription for the Bonds may be made in the prescribed application form Form A or in any other form as near as thereto, stating clearly the grams (in units) of gold and the full name and address of the applicant. Every application must be accompanied by valid ‘PAN details’ issued by the Income Tax Department to the investor(s). Designated Scheduled Banks, designated Post Offices, Stock Holding Corporation of India Ltd, Clearing Corporation of India Ltd and recognized stock exchanges, viz. National Stock Exchange of India Ltd and Bombay Stock Exchange Ltd are the Receiving Offices which are authorized to receive applications for the Bonds either directly or through agents and render all services to the customers. The Receiving Office shall issue an acknowledgment receipt in Form B to the applicant.
5. All online applications should be accompanied by email Id of the investor/s which should be uploaded on the Ekuber portal of Reserve Bank of India along with the subscription details.
6. In addition to receipt of application, the Receiving Offices are also entrusted with the responsibility of providing service to the investors of the SGB and are required to be guided by the rules and regulations issued by Reserve Bank in this regard from time to time. With a view to facilitate availability of all current operative instructions regarding servicing of these bonds at one place, Reserve Bank has issued Consolidated Procedural Guidelines vide circular IDMD.CDD.1100/14.04.050/2021-22 dated October 22, 2021 and the same is available on RBI website. The Receiving Offices shall be guided by these instructions while dealing with all the procedural aspects and providing service to the investors.
7. All other terms and conditions specified in the notification of the Government of India, Ministry of Finance (Department of Economic Affairs) F.No.4(2)-W&M/2018 dated March 27, 2018 shall apply to the Bonds.
Yours faithfully,
(Rakesh Tripathy)
Chief General Manager
