Sovereign Gold Bond Scheme 2021-2022

Pure Gold bars stacked

The First Tranche of Sovereign Gold Bonds for the current year, i.e. 2021-2022, opened on 17th May 2021. The Subscription period extends to 21st May 2021. The Issue price has been fixed @ Rs. 4,777/gram as per a statement issued by the central bank.

Sovereign Gold Bonds (SGB) are Government issued securities in the form of gold. The govt works along with RBI (Reserve Bank of India) for its issuance. They were first launched in 2015 and since then has been the favourites amongst people investing for the long term. It certainly holds a lot of benefits.

Alternately you can invest in Gold ETFs and Digital Gold through several UPI apps. They hold their own merits. Read more information on the different ways you can invest in gold here.

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The Reserve Bank of India fixes the price of gold bonds by calculating the average of the closing price of 999 purity gold in the last 3 business days in the week preceding the issue.

This price of gold is published every day by the IBJA (India Bullion and Jewellers Association Limited).

Hence, you can expect the price of the gold bond tranches to be different each time they are issued. For people who have a keen analysis, you can check historically what time of the year gives a better price for gold bonds subscription, i.e. you could potentially save a bit more in a later tranche.

Who Can Buy?

Almost every citizen of India is allowed to participate. Even Trusts, Charitable Organizations, Universities and HUFs (Hindu Undivided Family) are allowed to invest in the gold bonds.

This basically leaves out just Organizations (private + govt) and probably poor yoda below!


Where can you buy?

Your buying options are limited and abundant at the same time.

They are limited by categories i.e. Commercial Banks, RBI designated Post Offices (most younger generation won't understand why), stock exchanges, certain UPI apps and agents.

They are abundant as below:

Commercial Banks:

Public Sector Banks

  • Bank of Maharashtra
  • Indian Bank
  • Bank of Baroda
  • Punjab & Sind Bank
  • Bank of India
  • Punjab National Bank
  • Canara Bank
  • State Bank of India
  • Central Bank of India
  • Union Bank of India
  • Indian Overseas Bank
  • UCO Bank

Private Sector Banks

  • Axis Bank
  • IndusInd Bank
  • Bandhan Bank
  • Karnataka Bank
  • Kotak Mahindra Bank
  • Karur Vysya Bank
  • Federal Bank
  • HDFC Bank
  • ICICI Bank
  • RBL Bank
  • IDFC Bank
  • South Indian Bank

For the complete Banks list, check the official RBI Document.

Check out the Complete List of Designated Post Offices by RBI.

The recognised Stock Exchanges include:

  • National Stock Exchange of India Ltd. (NSE)
  • Bombay Stock Exchange Ltd. (BSE)

Investment Limits

Cat and women meme on gold bonds

The minimum investment required for a subscription is the price of 1 gram of gold, i.e. Rs 4,777. The maximum investment allowed is 4kg for individuals and HUFs; however, Trusts and others can buy up to 20kgs!

Keep in mind, the 4kg limit applies to a single individual, so if your family has more members, you can theoretically each hold 4kg gold!

Discount - For Digital Payments

You heard it right! To promote online payments (a relief during COVID), the government has allowed a nominal discount of Rs. 50/gram for users paying and applying online through commercial banks' websites. For people buying low amounts, this might not be a very good incentive but as the amount increases, it becomes a good deal!

    Years to Maturity

    Right this part might be off-putting for a few, as the maturity age is 8 years!

    Don't fret, there is an option of getting your money early (well relatively at least) i.e., after 5 years. The amount will get credited to your designated account.

    The other option is to sell your bonds on the stock exchange, but, the liquidity (buyers of the bonds) are far less as compared to the time of the subscription directly from the government! So, selling your bonds might not be easy, especially if you own a big amount. Note: You need to request for your bonds to be held in Demat form when filling the form to apply if you plan to sell them early!


    • Interest on Capital invested
      • You gain a 2.5% interest on the capital invested by you annually. The payment, however, is credited in two equal bi-annual amounts. The last interest will be paid along with the entire amount to be credit at the end of the maturity period. Note: The interest earned for the entire period is counted as income and is hence taxable.
    • The SGBs can be given as collateral to get yourselves a loan!
    • Tax
      • As mentioned above, the interest is taxable; however, the entire amount received at the time of maturity is completely tax-free!!!
      • Keep in mind; if you exit before the maturity period of 8 years, then the amount will be taxable as Long Term Capital Gain, i.e. 10%.
    • Maturity amount
      • The maturity amount is decided as the closing price of gold supplied by IBJA on the business day before the date of maturation.

    Upcoming SGB Tranches

    If you are a bit exhausted and/or underprepared to invest this time, do not fret, as more tranches are just around the corner!

    Here is a list of all the Tranches by RBI between May 2021 to September 2021:

    Sr. No. Tranche Date of Subscription Date of Issuance
    1. 2021-22 Series I May 17–21, 2021 May 25, 2021
    2. 2021-22 Series II May 24–28, 2021 June 01, 2021
    3. 2021-22 Series III May 31-June 04, 2021 June 08, 2021
    4. 2021-22 Series IV July 12-16, 2021 July 20, 2021
    5. 2021-22 Series V August 09-13, 2021 August 17, 2021
    6. 2021-22 Series VI August 30-September 03, 2021 September 07, 2021

    Should you Invest?


    Yeah! We spent a lot of time curating this content because we are serious about this! If we thought this wasn't useful for you, we wouldn't be writing about it!

    So invest in SGBs according to the capital you have and according to your personal financial goal. You have all the information you need.

    Do follow our Blog for more such updates as they come in hot! Also, check out the 'The Phoenix Community - 2021" page as it houses a sneak peek of all our social media platforms!

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