Economy -Prelims- Sovereign Gold | UPSC Updates | Qualify IAS

What are Sovereign Gold Bonds?

Sovereign Gold Bond Scheme are government securities denominated in grams of gold, issued by RBI on behalf of the Government of India. Instead of buying physical gold, investors buy these bonds and get returns linked to gold prices plus fixed interest.

Key features

Issued in 1 gram multiples.

Minimum investment: 1 gram.

Maximum: 4 kg for individuals per financial year.

Tenure: 8 years.

Exit allowed after 5th year on interest payment dates.

Interest: 2.5% per annum, paid semi-annually.

Redemption amount linked to market price of gold.