The Central Government in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds.
The Sovereign Gold Bonds will be issued in six tranches from this month to September 2021. The Ministry of Finance in a statement said that the date of subscription of the Tranche 2021-22 series-l will be from 17th to 21st May and date of issuance will be 25th May.
Similarly, the date of subscription for series- 6 will be from 30th August to 3rd September and will be issued on 7th September.
The Ministry said, the Sovereign Gold Bonds will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited, designated post offices and recognised stock exchanges.
The minimum permissible investment will be one gram of gold. The Ministry said, investors will be compensated at a fixed rate of 2.50 percent per annum payable semi-annually on the nominal value.
The Bonds will be restricted for sale to resident individuals, Hindu Undivided Families, Trusts, Universities and Charitable Institutions.
The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised on the next interest payment dates.