SGB can be bought by paying the issue price and the bonds will be redeemed on maturity in Indian Rupees based on previous 3 working days simple average of closing price of gold of 999 purity published by IBJA.



The bonds are restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable institutions.


The bonds will be denominated in units of one gram of gold and multiples thereof.

Minimum Investment:

Minimum permissible investment will be 1 gram of gold.

Maximum Investment:

Maximum limit of subscription shall be of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time

Interest rate:

The investors will be paid Interest on the amount of initial investment at the rate notified by RBI for a particular tranche at the time of its launch and is payable semi-annually.


The tenor of the bond will be for a period of 8 years with an exit option from 5th year onwards to be exercised on the interest payment dates.


Redemption price shall be fixed 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, published by the India Bullion and Jewelers Association Limited.


Hassle free:

Ownership of gold in Demat form, without any physical possession(No risks and no cost of storage)

Tax treatment:

The capital gains tax arising on redemption of SGB to an individual has been exempted.


Bonds will be tradable on stock exchanges within a fortnight of the issuance on a date as notified by the RBI.

Valuable collateral:

Bonds can be used as collateral to obtain a loan from banks


Bonds shall be transferable by execution of an Instrument of transfer in accordance with the provisions of the Government Securities Act.
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