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Sovereign Gold Bond Scheme

By Sagar Charpe Updated: 18 May 2020 3 min read Verified Civil Services Notes

Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold.They are substitutes for holding physical gold.Investors have to pay th...

• Key concept: Sovereign Gold Bond Scheme
• Essential for UPSC CSE Prelims, State PSCs, SSC CGL & Railway exams.
• Comprehensive analytical coverage and factual pointers provided below.

  1. Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold.
  2. They are substitutes for holding physical gold.
  3. Investors have to pay the issue price in any of our branches or through Internet Banking.
  4. The bonds will be redeemed to the customer’s account on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.
  5. The risks and costs of storage of physical gold are eliminated.
  6. Investors are assured of the market value of gold at the time of maturity and periodical interest