Sovereign Gold Bond Scheme 2023-24

Sovereign Gold Bond Scheme 2023-24,  Next Issue Date, Price, Interest Rate, Calculator, Benefits, How To Buy Online

Sovereign Gold Bond Scheme 2023-24:- Beyond its financial value, gold holds a sacred status for Native Americans. Owning gold no longer carries the same risks or costs associated with waste and fabrication. One such substitute that the Indian government and Reserve Bank of India (RBI) provide is Sovereign Gold Bonds. Gold in “certificate” format is available for purchase here.


What is a Sovereign Gold Bond Scheme 2023-24?

In order to provide investors with an alternative to actual gold, the Indian government launched the Sovereign Gold Bond (SGB) Scheme in November 2015. The demand for real gold has significantly decreased over time, according to market data. SGBs monitor the asset’s export-import value while simultaneously ensuring transparency.

SGBs are regarded as safe government securities. Multiples of grams of gold are used to express its value. SGBs are seen as a viable alternative to actual gold, and their investor base has grown significantly. To acquire an SGB, all you need to do is get in contact with an agent or broker authorized by SEBI. When you redeem the bond, the corpus will be redeemed at the current market value.

Sovereign Gold Bond Scheme 2023-24 Next Issue and Upcoming Issues

Sovereign Gold Bond 2023-24 Series III

Subscription PeriodDate of IssuanceInvestment LimitInterest Issue Price Per Gram
18 December 2023 – 22 December 202328 December 20231 gm to 4 kg2.5% per annumYet to be announced 
Sovereign Gold Bond Scheme 2023-24

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Sovereign Gold Bond 2023-24 Series IV

Subscription PeriodDate of IssuanceInvestment LimitInterest Issue Price Per Gram
12 February 2024 – 16 February 202421 February 20241 gm to 4 kg2.5% per annumYet to be announced 

Sovereign Gold Bond Price History

The price history of SGB for FY 2023-24 is as follows:

SeriesMonthPrice per Gram
Series 1June 2023Rs. 5,926
Series 2September 2023Rs. 5,923

he price history of SGB for FY 2022-23 is as follows:

SeriesMonthPrice per Gram
Series 1June 2022Rs. 5,041
Series 2August 2022Rs. 5,091
Series 3December 2022Rs. 5,409
Series 4March 2023Rs. 5,611

The price history of SGB for FY 2021-22 is as follows:

SeriesMonthPrice per Gram
Series 1May 2021Rs. 4,777
Series 2May 2021Rs. 4,842
Series 3June 2021Rs. 4,889
Series 4July 2021Rs. 4,807
Series 5August 2021Rs. 4,790
Series 6September 2021Rs. 4,732
Series 7October 2021Rs. 4,765
Series 8November 2021Rs. 4,791
Series 9January 2022Rs. 4,786
Series 10March 2022Rs. 5,109

Who Should Invest in Sovereign Gold Bond Scheme 2023-24?

You can think about adding at least 5%–10% of gold to diversify your holdings. It is the ideal investment for those with a limited tolerance for risk because it is low risk. SGBs are quite inexpensive to buy or sell in comparison to actual gold. Comparing the cost of purchasing or selling the SGB to that of actual gold, it is likewise negligible.

SGBs are an option for those who do not want to deal with the inconveniences of physically storing gold. This is because, being in electronic form, it is easier to store in Demat form and cannot be stolen.

Features of Sovereign Gold Bonds

Eligibility Criteria

Investments in SGB are open to all Indian residents, including individuals, trusts, HUFs, universities, and charitable organizations. Investing on behalf of a minor is also permitted.

Issuance of Bonds

On behalf of the Central Government, SGBs can only be issued by RBI, and they are exchanged on the Stock Exchange. It is distributed in multiples of one gold gram. For it, investors will get a Holding Certificate. It can be changed to a Demat format as well.

KYC Documentation

The Know-Your-Customer (KYC) regulations apply here just as they do when purchasing physical gold. In order to complete KYC, copies of identification documents—such as a PAN card—and proof of address documents, such as a passport, driver’s license, or voter ID card, must be submitted for verification.

Capital Gains

The requirements of the IT Act, of 1961 apply to the taxation of interest on Sovereign Gold Bonds. The capital gains tax that applies to an individual is waived in the event of SGB redemption. Additionally, an investor or the person transferring the bond to another is provided indexation benefits on long-term capital gains.

Eligibility for SLR

Banks have taken responsibility for SLR if they have purchased bonds following the procedures of pledging, hypothecating, or claiming lien. Before extending credit to consumers, a commercial bank must keep capital in the form of gold, cash, and permitted securities, which is known as the Statutory Liquidity Ratio (SLR).

Redemption Price

Based on the average closing price of 999-purity gold over the preceding three working days, the redemption price must be expressed in rupees.

Sales Channel

Bonds are sold by the government via banks, Stock Holding Corporation of India Limited (SHCIL), and a few chosen post offices, depending on the information available. The National Stock Exchange of India and the Bombay Stock Exchange are two reputable stock exchanges where SGBs can be traded directly or through middlemen.


For the bond distribution, the receiving offices will charge a commission equal to 1% of the total amount of subscriptions. They will give intermediaries (brokers or agents) at least half of this commission.

Sovereign Gold Bond Scheme 2023-24

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Sovereign Gold Bond Maturity Period

Eight years is the sovereign gold bond’s maturity period. You may, however, decide to sell the bond after the fifth year (but only on interest payout days).

Sovereign Gold Bond Scheme 2023-24 Premature Redemption Price

The RBI declared on October 27, 2023, that SGBs issued on October 30, 2017, would have an early redemption price of Rs. 6,079 per unit. Once five years have passed since the SGB’s issuance date—which also happens to be the date of interest payment—investors may begin the early redemption process. Hence, on October 30, 2023, investors in SGBs issued on October 30, 2017, may redeem their investments early for Rs. 6,079 per unit.

According to information released by the India Bullion and Jewellers Association Ltd (IBJA), the price for early redemption is established by taking the simple average closing price of gold with 999 purity over the preceding three working days. Based on the simple average closing price of gold for the three business days prior to the redemption date, i.e., October 25–27, 2023, the redemption price for premature redemption of SGBs due on October 30, 2023, is Rs. 6,079 per unit.

Sovereign Gold Bond Interest Rate/Return

The interest rate on your initial investment with SGB is currently 2.50% annually. Until maturity or eight years, it is paid twice a year (semi-annually). Your account, which you shared during investing, will receive a direct credit for interest. The current market price of gold is typically correlated with returns.

Sovereign Gold Bond Maximum Limit

The bonds’ value is measured in multiples of gram(s) of gold, with one gram serving as the fundamental unit. An individual or HUF investor may invest as little as one gram of gold at the beginning, with a maximum investment of four kilograms of gold. Investments in up to 20 kg of gold are acceptable for organizations like trusts and colleges.

How to Buy a Sovereign Gold Bond Online?

Applying for a Sovereign Gold Bond can be done directly or through agents through banks, Stock Holding Corporation of India Limited (SHCIL), authorized post offices, and authorized stock exchanges such as the National Stock Exchange of India Limited and the Bombay Stock Exchange.

The websites of the commercial banks allowed to offer SGBs can also be used to purchase them online. Buying SGBs via an online bank website is done in the following manner:

  • Open your bank account online to begin the session.
  • Once you’ve chosen “Gold Sovereign Bond,” go to “e-Services” and click “Continue” after reviewing the terms.
  • Click “Environment” once the registration form is complete.
  • Please provide candidate details and the subscription amount on the purchase form.
  • Click “Send” once you’ve verified that all the data is accurate.

How to Check Sovereign Gold Bond Status?

A Sovereign Gold Bond that you bought online via a Demat account will show up in the portfolio upon the SGB’s issuance. When purchasing something offline, a person can pick up the SGB certificate of holding at the issuing bank, designated stock exchanges, post offices, SHCIL offices, or agents. The email address provided in the application form will get a digital copy of the holding certificate from the RBI.

Sovereign Gold Bond Certificate Download

On the day of SGB issuance, the customers will receive the holding certificate. If the recipient has requested to receive the certificate in hard copy, it will be mailed to the email address on file; if not, it will appear in the Demat account on the day the SGB is issued. The holding certificate is also available for customers to pick up from the bank branch.

Sovereign Gold Bond Tax Exemption Under Section 80C

For SGBs deposited in a lump sum under Section 80C of the Income Tax Act, there are no tax deduction advantages. It is also not tax-free to receive interest on SGB deposits. Under “Income from Other Sources” on tax forms, the interest amount must be disclosed. According to the person’s income tax slab, income tax will be paid. SGBs do not qualify for Tax Deducted at Source (TDS). When kept until maturity, they are, nevertheless, free from capital gains tax.

Sovereign Gold Bond Benefits

Absolute Safety

Aside from market concerns, Sovereign Gold Bonds carry none of the hazards connected with actual gold. Here, there are no exorbitant design or waste fees. Furthermore, SGBs yield interest as opposed to real gold, which is a worthless investment.

Extra Income

The most recent fixed rate is available to you; it guarantees an annual interest rate of 2.50% (on the issue price).

Indexation Benefit

When investors transfer bonds that are eligible for indexation benefits, long-term capital gains result. A governmental guarantee is also present for both the principal and the interest accrued.


Within a certain time frame, gold sovereign bonds can be traded on stock exchanges (at the issuer’s choice). For example, you can swap them on the National Stock Exchange or the Bombay Stock Exchange, among other exchanges, once your five years of investment are up.

Collateral for loans

When it comes to loans committed in Demat form, certain banks accept SGB as security or collateral. Because of this, they will fix the loan-to-value (LTV) ratio to the gold value and classify it as a gold loan. Making this determination is the India Bullion and Jewellers Association Limited.

Sovereign Gold Bond Scheme 2023-24

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Comparing SGB with Physical Gold & Gold ETFs

ParticularsPhysical GoldGold ETFSovereign Gold Bond
Returns/earningsLower than the real return on gold due to making chargesMore than the actual return on goldMore than actual return on gold
SafetyRisk of theft, wear/tearHighHigh
PurityThe purity of gold always remains a questionHigh as it is in electronic formHigh as it is in electronic form
GainsLTCG after three yearsLong-term capital gain post after three yearsTradable on the Stock Exchange
As loan collateralAcceptedNot acceptedAccepted 
Tradability or exit formalitiesRestrictiveTradable on Stock ExchangeCan be traded and redeemed from the 5th year with the government
Storage expendituresHighMinimalMinimal


Q. Are sovereign gold bonds a safe investment?

Ans- In accordance with the Government Security Act of 2006, the RBI issues SGBs on behalf of the national government. Given that the government is backing it, there is very little danger of a repayment default, making it one of the safest investment options.

Q. For sovereign gold bonds, which bank is the best to invest with?

Ans- The designated post offices, nationalized bank branches, scheduled foreign banks, and scheduled private banks are the channels by which the gold bonds are offered for sale. Any bank may be used to invest in SGBs. It is advised that if you have a bank account, you apply for an SGB there.

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