Sovereign Gold Bond Scheme 2021-22 – Series VI

  • The Reserve Bank of India (RBI) has announced the Sovereign Gold Bond Scheme 2021-22 Series VI, which will be open for subscription for the period August 30-September 3, 2021. The nominal value of the bond, based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period, works out to ₹4,732 per gram of gold, the RBI said.
  • The Centre, in consultation with the RBI, has decided to offer a discount of ₹50 per gram less than the nominal value to those investors applying online and making payment against the application via digital mode. “For such investors, the issue price of gold bond will be ₹4,682 per gram of gold,” the RBI said.
  • Earlier, the government had announced issuance of the Sovereign Gold Bond (SGB) in six tranches from May 2021 to September 2021. The RBI issues the bonds on behalf of the Government of India.
  • The bonds are sold through banks (except small finance banks and payment banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges National Stock Exchange of India Limited and BSE.
  • A total of Rs 25,702 crore has been raised through the SGB Scheme since its inception till end-March, 2021. The Reserve Bank had issued 12 tranches of SGB for an aggregate amount of Rs 16,049 crore (32.35 tonnes) during 2020-21.
  • The scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings used for the purchase of the yellow metal into financial savings.