Scrap Monster
Vulcan
Vulcan
Gold October 01, 2019 10:30:23 AM

RBI to Launch Sovereign Gold Bonds in Six Tranches

Paul Ploumis
ScrapMonster Author
The first tranche of gold bonds will be issued on October 15th, for which customers could subscribe from Oct 7th to 11th.

RBI to Launch Sovereign Gold Bonds in Six Tranches

SEATTLE (Scrap Monster): The Reserve Bank of India (RBI) announced its decision to issue sovereign gold bonds in six tranches starting this month until March next year. The Central bank notification stated that two tranches will be issued during this month, in order to take advantage of the festive season demand for gold and gold products.

According to RBI, customers still prefer to buy physical gold during festive season. However, gold bonds have been witnessing increased demand over the past few years. The fact that gold bonds are easy to purchase and redeem online, makes it a preferred choice for customers in terms of convenience. Further, it does not cost anything for the customer to hold gold bond assets. Also, unlike physical gold, gold bonds are free from security issues such as loss of gold due to theft, burglary etc.

ALSO READ: India Launches New Series of Sovereign Gold Bond Scheme

The first tranche of gold bonds will be issued on October 15th, for which customers could subscribe from Oct 7th to 11th. The issue date for the second tranche will be October 30th, for which subscriptions will be open from October 21st to 25th. Further, RBI has announced monthly issual of bonds from December 2019 to March 2020, whose dates are currently fixed as December 10th, January 21st, February 11th and March 11th.

The bonds will be denominated in multiples of grams of gold with a basic unit as 1 gram. They will be issued for a period of 8 years. However, customers will be provided with an option to exit the bond after five years RBI noted.

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox
Facebook Twitter Linkedin