What is SGB?

Government securities denominated in grams of gold and this offers a superior alternative to holding gold in physical form. Bond is issued by Reserve Bank on behalf of Government of India.

Who can open?

Bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trust, Universities & Charitable Trust

Minimum and Maximum limit

Individual: Min - 1 gram & Max - 4 Kg

Others: Min - 1 gram & Max - 20 Kg

Interest Rate

2.5% (paid half-yearly)

Apart from the coupon payment (as per the gold rate as the time of coupon payment)

Tenure of account

8 years (lock in period - 5 years)

Withdrawal facility

Exit option may be exercised from 5^th year on the interest payment dates.

Other features

Bonds are eligible for conversion to DEMAT form.

Investors to pay the issue price and the bonds will be redeemed on maturity. Investors are assured of the market value of gold at the time of maturity and periodical interest (half yearly).