{"id":1268,"date":"2026-06-19T06:25:28","date_gmt":"2026-06-19T06:25:28","guid":{"rendered":"https:\/\/materials.simplycurrentaffairs.com\/?p=1268"},"modified":"2026-06-26T06:25:35","modified_gmt":"2026-06-26T06:25:35","slug":"sovereign-gold-bonds-2","status":"publish","type":"post","link":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/2026\/06\/19\/sovereign-gold-bonds-2\/","title":{"rendered":"Sovereign Gold Bonds"},"content":{"rendered":"\n

Sovereign Gold Bonds<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h2>\n\n\n\n

About<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n
    \n
  • Sovereign Gold Bonds (SGBs) are bonds that are issued by the Reserve Bank of India (RBI) on behalf of the Government<\/strong> on payment of rupees but denominated in grams of gold.\u00a0<\/strong>\u00a0<\/li>\n\n\n\n
  • The value of these bonds is tied to the value of gold. <\/strong>On redemption, the investor gets interest income and the prevailing price of gold.\u202f<\/strong>\u00a0<\/li>\n\n\n\n
  • It seeks to encourage people to buy gold bonds instead of actual gold, <\/strong>thereby helping to reduce the annual demand for gold imports.<\/strong><\/mark><\/li>\n<\/ul>\n\n\n\n

    Features of SGBs<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/mark><\/strong><\/h3>\n\n\n\n

    Eligibility:<\/strong><\/h4>\n\n\n\n
      \n
    • Restricted to resident individuals, Hindu Undivided Families (HUFs), Trusts, Universities and Charitable Institutions.<\/strong><\/li>\n<\/ul>\n\n\n\n

      Denomination:<\/strong><\/strong><\/h4>\n\n\n\n
        \n
      • SGBs are denominated in multiples of gram(s) of gold.<\/strong><\/li>\n<\/ul>\n\n\n\n

        Minimum Permissible Investment:<\/strong><\/strong><\/strong><\/h4>\n\n\n\n
          \n
        • One gram of gold.<\/strong><\/li>\n<\/ul>\n\n\n\n

          Maximum Limit:<\/strong><\/strong><\/strong><\/strong><\/h4>\n\n\n\n
            \n
          • 4 Kg for individuals, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year<\/strong>.<\/li>\n<\/ul>\n\n\n\n

            Tenor<\/strong><\/strong><\/strong><\/strong><\/strong>:<\/h4>\n\n\n\n
              \n
            • SGBs are issued with a maturity period of 8 years.<\/strong> Investors are allowed early redemption after 5 years.<\/strong><\/li>\n<\/ul>\n\n\n\n

              Interest Rate:<\/strong><\/strong><\/strong><\/strong><\/h4>\n\n\n\n
                \n
              • 2.50 per cent per annum. <\/strong>Interest will be credited semi-annually<\/strong>.<\/li>\n<\/ul>\n\n\n\n

                Sales Channel:<\/strong><\/strong><\/strong><\/h4>\n\n\n\n
                  \n
                • SGBs are sold through Scheduled Commercial Banks <\/strong>(except Small Finance Banks,\u00a0 Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices <\/strong>and recognised stock exchanges <\/strong>viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.<\/li>\n<\/ul>\n\n\n\n

                  Other Key Features:<\/strong><\/strong><\/strong><\/h4>\n\n\n\n
                    \n
                  • The investment in SGBs will be eligible for Statutory Liquidity Ratio (SLR) <\/strong>compliance by banks.\u00a0<\/li>\n\n\n\n
                  • These bonds can also be used as collateral<\/strong> for loans.<\/strong>\u00a0<\/li>\n\n\n\n
                  • The interest<\/strong> on SGBs shall be taxable <\/strong>as per the provision of Income Tax Act, 1961.\u00a0\u00a0<\/li>\n\n\n\n
                  • The capital gains tax <\/strong>arising on redemption of SGB to an individual<\/strong> has been exempted.<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                    Sovereign Gold Bonds About Features of SGBs Eligibility: Denomination: Minimum Permissible Investment: Maximum Limit: Tenor: Interest Rate: Sales Channel: Other Key Features:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-1268","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/comments?post=1268"}],"version-history":[{"count":1,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1268\/revisions"}],"predecessor-version":[{"id":1269,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/posts\/1268\/revisions\/1269"}],"wp:attachment":[{"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/media?parent=1268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/categories?post=1268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/materials.simplycurrentaffairs.com\/index.php\/wp-json\/wp\/v2\/tags?post=1268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}