Home Economy Union Budget 2021: Buy gold at cheaper rates

Union Budget 2021: Buy gold at cheaper rates

According to the statement issued by the Reserve Bank Of India (RBI), the issue price for the Sovereign Bond has been fixated at Rs 4,912 per gram gold. Customers can now buy gold at cheaper rates. "The nominal value of the bond...Works out to Rs 4,912," the RBI said.

February 2, 2021:The Sovereign Gold Bond Scheme 2020-21, Series XI, was launched on February 1, simultaneously with Finance Minister Nirmala Sitharaman’s presentation of the Union Budget 2021. The Sovereign Gold Bond Scheme 2020-21 – Series XI is open for subscription from February 01 to February 05, 2021. This scheme makes it available for customers to buy gold at cheaper rates.

buy-gold-at-cheaper-rates-utkal-today
Image: Mint

Buy gold at cheaper rates

According to the statement issued by the Reserve Bank of India (RBI), the issue price for the Sovereign Bond has been fixated at Rs 4,912 per gram gold.  “The nominal value of the bond…Works out to Rs 4,912,” the RBI said.

The value of the bond is based totally on the easy common last charge posted by India Bullion and Jewellers affiliation Ltd (IBJA) for gold of 999 purity of the remaining three enterprise days of the week preceding the subscription length (January 27-29, 2020).

The bank said the government, in consultation with the RBI, has been determined to provide a reduction of Rs 50 consistent with gram to those buyers applying online and the charge towards the application is made via digital mode.

“For such investors, the problem fee of Gold Bond will be Rs 4,862 in keeping with gram of gold,” the central bank said.

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Image: Reliance Securities

Sovereign Gold Bond Schemes

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold.

 Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by the Reserve Bank on behalf of the Government of India.

How will the SGB Scheme be offered and how can people buy gold at cheaper rates?

The bonds can be offered through scheduled industrial banks (besides Small Finance Banks and fee Banks), inventory protecting employers of India constrained (SHCIL), specific put up places of work, and known stock exchanges viz., country wide inventory trade of India limited and Bombay inventory trade constrained.

Also read: What got cheaper and what will be costlier after Union Budget 2021

Who should buy

The Bonds will be limited on the market to resident people, HUFs, Trusts, Universities and Charitable institutions.

Tenure of the Sovereign Gold Bond Scheme

The tenure of the Bond will be for a duration of eight years with go out of choice after the 5th year to be exercised at the interest payment dates.

Anwesha Mishra
Anwesha hails from Odisha and is pursuing her bachelor's degree in English Literature from Ravenshaw University. She is a voracious reader and a writer. Apart from that, she's also a singer.

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