As an alternative to physical gold, Sovereign Gold Bonds (SGB) provide guaranteed returns in the form of 2.5% semi-annual interest on the initial investment and redemption at the market price of gold at maturity. Furthermore, unlike physical gold, SGBs avoid storage concerns and taxes related to physical gold purchases.
When will RBI announce Series 1?
Given previous bond notifications, the Reserve Bank of India (RBI) is expected to announce the first tranche (Series 1) of the Sovereign Gold Bond (SGB) 2024-25 in June 2024.
June is usually the month for the Series 1 issuance and historically, the RBI releases four tranches of SGBs over the fiscal year (April-March). But RBI hasn’t made any announcements on the SGB series as of now.
During the financial year 2023-24, 4 SGB series were announced on the following dates:
- First series: June 19-23, 2023
- Second series: September 11-15, 2023
- Third series: December 18-22, 2023
- Fourth series: February 12-16, 2024
One gram of gold and its multiples are the denominations in which SGBs are issued. The minimum investment is one gram, with a maximum subscription of four kilograms for individuals, 4 kg for Hindu Undivided Family and 12 kilograms for trusts and similar entities as defined by the government from time to time every fiscal year (April – March).
SGBs are offered directly or through agents at offices or branches of national banks, Scheduled Private Banks, Scheduled Foreign Banks, authorized Post Offices, Stock Holding Corporation of India Ltd. (SHCIL) and licensed stock exchanges.