The first tranche of 2021-22 gold sovereign bonds was opened for subscription on Monday. These will be issued in six installments from May 2021 to September 2021, according to a statement released by the Ministry of Finance.
The problem comes at a time when gold prices are rising after falling sharply over the past two months.
While the subscription period for Series I 2021-22 will be May 17-21, the bonds will be issued on May 25.
Let’s find out what the centralized system is:
- The Reserve Bank of India (RBI) will issue the bonds on behalf of the Indian government.
- The face value of the bond based on the simple average closing price of 999 purity gold for the last three working days of the week preceding the subscription period, amounts to approximately Rs 4,777 per gram of gold.
- The minimum subscription limit for an individual has been set at one gram.
- The maximum subscription limit for one individual at a time has been set at 4 kg.
Gold bonds will be sold through the planned commercial banks except small financial and payment banks, designated post offices, recognized stock exchanges such as Bombay Stock Exchange Limited and National Stock Exchange of India , and Stock Holding Corporation of India Limited.
The sovereign gold bond system was launched in November 2015 to reduce the demand for physical gold and shift some of the domestic savings – used to buy gold – into financial savings.