State Bank of India offers Sovereign Gold Bond that is the most and extremely profitable form of gold investment. The particular gold bond is not available throughout the year. The initial branch regarding the gold bond had been issued in November 2015. SBI and Post Offices are the key channels for selling of the gold bonds because both of these channels hold the largest reach in this country (India).
Sovereign Gold Bond – Features
Let’s discuss some of the features of Sovereign Gold Bond that has been offered by State Bank of India:
- Gold bond can be purchased instead of physical gold.
- The price of the gold bond is connected to the gold price.
- The purchase price, as well as selling price of this particular bond, is going to be the existing market price of the gold.
- In case of the enhancement of the gold value, the value of the gold bond enhances as well.
- It is almost identical to that of possessing gold in gold coins as well as bullion form.
- Aside from the existing gold rate, the respective person will earn an interest as well that is paid on the half-yearly basis.
- The gold issue price will be the market value (previous week’s) of the gold.
- The tenure is 8 years as well as the untimely redemption is possible after 5 years.
To know about other features, take help of the internet.
How to Buy Sovereign Gold Bond Online From SBI?
The issuance of Gold bonds occurs at the minimum twice a year, however, the government has not given any specification about the timing so far but it might be close to Akshaya Tritiya as well as Diwali. The particular Sovereign Gold Bond can be purchased from any of the SBI branches. For subscribing the gold bond, RBI’s -Kuber core banking system is used. Underneath are the steps described to purchase gold from SBI:
- The particular gold forms are available in the online mode that one can print out and then fill.
- An individual will be needed to fill 3 forms for the initial subscription. Form A is the key subscription form, where he/she will need to provide with their personal details as well as state the amount of subscription. Form B is required to provide with the acknowledgment, the respective bank officer is going to provide that person with this particular form for filling the details of subscription. Form D is needed for nomination and this Form needs to be submitted along with Form A. In case a person wants to abandon the nomination, then he/she needs to use Form E.
- You need to affix your proof of address and identity with the form for the completion of the KYC formalities.
- In case you are providing the payment through cheque, you need to abandon the cheque. You can also provide the payment via demand draft, cash as well as electronic fund transfer. The demand draft and cheque need to be in the name of the particular branch of State Bank of India.
- You need to submit each and every form accompanied by the needed documents to the branch.
- After the checking of the details, the respective person will obtain the Form B that is the acknowledgment receipt.
- For the subscription for gold, the respective person will need to go to the branch as well as the SBI official is going to analyse the RBI’s e-Kuber system and is going to upload the respective individual’s data, as well as an instant confirmation, is going to be provided.
- RBI will produce the holding certificates for the purpose of subscription. The bank is going to download it as well as get that printed. That is going to be sent to the investors.
- In case the investor has defined for the demat account, then securities are going to be credited to the demat account of the investors on the date of allotment.
For more information on Sovereign Gold Bond, you can search on the official website of SBI.