Sovereign Gold Bonds

Sovereign Gold Bonds

Sovereign Gold Bonds are government securities denominated in grams of gold issued by Reserve Bank of India on behalf of Government of India. They are alternatives for holding physical gold. The tenor of the Bond will be for a period of 8 years with exit option after 5 years and 6 months. On maturity, the investors will get the redemption proceedings in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment. The redemption proceedings will be credited to investors account automatically. At present the investors will get interest at 2.5% p.a credited semiannually to the bank account of the investor. RBI will issue Press Release stating interest rate of the Bond before new Issue



  • The bonds can be availed in both paper and Demat form.
  • PAN is mandatory for subscription.
  • Individuals are exempt from capital gains taxes on redemption.
  • Minimum permissible investment will be 1 gram of gold.
  • The quantity of gold for which the investor pays is protected.
  • Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.
  • SGB can be availed Single or Joint.
  • The application on behalf of the minor has to be made by his/her guardian. Minor should have a valid Pan.
  • The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts and similar entities per fiscal year (April-March) notified by the Government from time to time.
  • In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.
  • RBI will issue Press Release stating issue price of the Bond before new Issue. Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited (IBJA) for the last 3 business days of the week preceding the subscription period.
  • Payment for the Bonds will be through cash payment (up to a maximum of Rs. 20,000/-) or demand draft or cheque or electronic banking.
  • The Gold Bonds will be issued as Government of India Stocks under Government Security Act, 2006. The investors will be issued a Holding Certificate for the same.
  • The redemption price will be in Indian Rupees based on simple average of closing price of gold of 999 purity of previous 3 working days published by IBJA.
  • Bonds can be used as collateral for loans.
  • Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.
  • Bonds are transferable.
  • All the branches of the Dhanlaxmi Bank are authorized to accept the subscription

You can subscribe to the Gold Bond Scheme at your nearest Dhanlaxmi Bank Branch or contact us 044 42413000 or mail to us or request a call back.