RBI fixes issue price of gold bond at Rs 5,051 per gram

RBI fixes issue price of gold bond at Rs 5,051 per gram

Mumbai: The Reserve Bank of India (RBI) said in a statement on Friday that the issue price of gold bonds has been fixed at Rs 5,051 per gram. The series of Sovereign Gold Bond Scheme 2020-21 - will be open from October 12 to October 16 for seven subscriptions. "The value of the bond is Rs. 5,051 per gram based on the average closing price of 999 purity gold in the last three trading days of the previous week from the subscription period," the RBI said in a statement. 

The statement further said that the government, in consultation with the RBI, has decided to give a rebate of Rs 50 per gram to investors applying online and making digital payments. The central bank said, "The price of gold bonds for such investors will be Rs. 5,001 per gram." The eighth episode of the Sovereign Gold Bond Scheme (SGB) 2020-21 series will open for subscription from November 9 to November 13. RBI is issuing Sovereign Gold Bond 2020-21 on behalf of Government of India. 

Gold bond can be taken in multiples of one gram of gold. Its duration is eight years and after five years it also has an option to opt out. A minimum of one gram of gold can be invested in gold bonds and the maximum investment limit for the common man is four kg, while for Hindu Undivided Family (HUF) this limit is four kg and 20 kg for trust.