Sovereign Gold Bond 2020 21 Series II is opening for subscription from Monday, 11th May to Friday, May 15, 2020. The price of gold per gram has been fixed at Rs 4,590. At the time of issuing the first series, the offer price of Gold Bond was Rs 4,639 per gram. Those who apply for them online and pay through digital payment will get a discount of 50 rupees per gram. Let us understand here what Sovereign Gold Bond is and why it is a better investment option.The second tranche of Sovereign gold bonds of this fiscal year (2020-21) will open for subscription on 11 May 2020. The applications can Buy online Bank Wise SBI, IDBI Bank, ICICI, PNB, Bank of Baroda, HDFC, Axis bank & Zerodha as well as offline mode. Sovereign gold bond Series 2 scheme 2020-21 will close for subscription on May, 15th 2020. After May 15th, allotment status will be released on 19th May. So, make sure you apply for them as soon as possible.
10 things to know about Sovereign Gold Bond 2020
1) In April the government had also issued the Series 1 tranche of gold bonds and the latest one comes at a time when gold is attracting strong investment demand.
2) Gold holdings with SPDR ETF, the world’s biggest gold exchange traded fund, have risen to multi-year highs of 1075.8 tonnes.
3) In April, gold futures prices on MCX had surged to record high above ₹47,000 per 10 gram. In the past one year, gold prices are up about 40%. Fears of a deeper global recession due to coronavirus-related lockdowns and widespread stimulus from central banks has helped lift prices of gold, which is seen as a hedge against inflation and currency debasement.
4) Gold ETFs, offered by mutual funds in India, saw an inflow of ₹731 crore last month, after withdrawals of ₹195 crore in March.
5) The issue price of sovereign gold bonds is fixed based on recent closing price of gold as published by the India Bullion and Jewellers Association Ltd for gold of 999 purity.
6) The minimum permissible investment in gold bonds is one gram of gold and they have a maturity period of eight years.
7) Investors will have the option to exit after the fifth year. Bonds are also traded on stock exchanges, offering buy or sell option to investors, subject to liquidity.
8) Gold bonds offer an annual interest rate of 2.50% to investors.
9) Capital gains, if any, at maturity is tax-free. This is an exclusive benefit available on gold bonds. Physical gold or other forms of investments like gold ETF or gold mutual funds don’t qualify for this benefit.
10) The RBI had earlier released the timeline of issuances of gold bonds for the first six months of the year. Here is the timeline of gold bond that will be issued for next four months:
Tranche | Date of Subscription | Date of Issuance
2020-21 Series III June 08-12, 2020 June 16, 2020
2020-21 Series IV July 06-10, 2020 July 14, 2020
2020-21 Series V August 03-07, 2020 August 11, 2020
2020-21 Series VI Aug.31-Sept.04, 2020 September 08, 2020
The sovereign gold bond scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings – used for the purchase of gold – into financial savings.
Sovereign Gold Bond 2020 Online Purchase
The Reserve Bank of India said last month that the government would issue sovereign gold bonds in six phases from April 20 to September. These Sovereign Gold Bonds will be sold through banks, except small finance banks and payment banks, Stock Holding Corporation of India (SHCIL), designated post offices, and stock exchanges (NSE and BSE). The Reserve Bank will issue these bonds on behalf of the Government of India. Bonds will be issued to investors after subscription. If you want to invest in this government scheme, then you can apply online for this.
SBI Sovereign Gold Bond Scheme 2020-21 – Series 2 Details:
| Product Name | Sovereign Gold Bonds Scheme 2020-21- Series 2 (Tranche 39) |
| Issuing Authority | Reserve Bank of India on behalf of the Government of India |
| Symbol | SGB202102 |
| Issue Period | from Monday, 11th May to Friday, May 15, 2020 |
| Issue Price per gram of gold | Online BID: Rs. 4540Offline BID: Rs. 4590 |
| Date of Allotment | May 19, 2020 |
Sovereign Gold Bond Scheme May 2020 Issue Price
The issue price has been fixed at Rs 4,590 per gram of gold. The Government of India has decided to give a discount of 50 rupees per gram to the offer price to the investors applying online and making payments through a digital medium. The price of the gold bond for online investors will be Rs 4,540 per gram. The first series of sovereign gold bonds in the current financial year showed a lot of enthusiasm among investors. According to RBI, the April series received a subscription of about 822 Crores for 17.73 lakh units. This is the highest subscription since October 2016.
Interest on Issue Price
Sovereign gold bonds earn a fixed interest of 2.50% every year on the issue price. This money is automatically deposited in your account every 6 months. You do not get this kind of benefit on physical gold and gold ETFs. According to the information given on the NSE website, one of the advantages of investing in sovereign gold bonds is that there is no tax on the profit after 8 years of maturity period. Also, there is no TDS on the interest paid every six months.
Minimum and Maximum Quantity
A person can buy bonds of minimum value of 1 gram and a maximum of 4 kg in a financial year. However, the maximum purchase limit for a trust is 20 kg. One can buy 500 grams of gold bonds in a fiscal year. Bond’s maturity period is 8 years old. But investors get a chance to exit after 5 years. That is, if you want to remove it, you can remove it after 5 years. According to the NSE, these sovereign gold bonds can also be used as collateral while taking loans. Apart from this, these bonds also trade on NSE.
Buy Sovereign Gold Bond Online Bank Wise
| Bank Name | Buy Online Link |
| State Bank of India (SBI) | Purchase Here |
| Punjab National Bank (PNB) | Purchase Here |
| ICICI Bank | Purchase Here |
| HDFC Bank | Purchase Here |
| Axis Bank | Purchase Here |
| Canara Bank | Purchase Here |
| Bank of Baroda | Purchase Here |
| IDBI Bank | Purchase Here |
| Zerodha | Purchase Here |
Buy Sovereign Gold Bond FAQ
Step 1: You can visit the official portal of any bank you wish to buy bond from.
Step 2: On the Home Page, click on Sovereign Gold Bonds 2020-21.
Step 3: Now click on Buy Now and read the complete terms and conditions.
Step 4: Fill the complete form and upload the required documents.
Step 5: Your Investment will now be successful.
Thing to Know before invest
- One can invest through Scheduled Commercial Banks (excluding Small Finance Banks and Payment Banks), designated Post Offices, Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges like, National Stock Exchange of India and Bombay Stock Exchange which are authorized to receive applications for the Bonds. One can apply for a minimum of 1 gram of gold up to a maximum of 4 kg of gold annually under different tranches during the year and even including those bought from the secondary market.
- Buying and selling of SGB units are also allowed anytime during the year on stock exchanges. This provides liquidity as one redeem them before maturity.
- on your investment in SGB, the government also pays as annual interest rate of 2.5 percent,which displayable half yearly. the interest earned is taxable. however, capital gains if any on maturity redemption will be tax -free in the hands of theinvestor
- SGB are issued as Government of India Stock by RBI and are eligible to be held in either Bond Ledger Account with reserve bank of India or which depositories in the demat account
