RBI SETS PRICE FOR PREMATURE REDEMPTION OF SGBS DUE ON APRIL 23 AT ₹7,325 PER UNIT

The Reserve Bank of India (RBI) on Monday (April 22) said the price for premature redemption of Sovereign Gold Bonds (SGBs), due on April 23, 2024, will be ₹7,325 per unit.

"Accordingly, the redemption price for premature redemption due on April 23, 2024, shall be ₹7325/- (Rupees Seven thousand three hundred and twenty-five only) per unit of SGB based on the simple average of closing gold price for three business days i.e., April 18, 19 and 22, 2024," the RBI said.

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SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The bond is issued by the RBI on behalf of the Government of India.

As per the government notification on SGB issued on January 14, 2016, redemption may be permitted after the fifth year from the date of issue of such gold bonds on the date on which interest is payable.

The scheme was launched in November 2015 to reduce the demand for physical gold and shift a part of domestic savings -- used for the purchase of gold -- into financial savings.

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The price of the bond is fixed in Indian rupees on the basis of the simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Ltd for the last 3 working days of the week preceding the subscription period.

2024-04-22T19:07:03Z dg43tfdfdgfd