RBI to Launch Sovereign Gold Bonds in Six Tranches

SEATTLE (Scrap Monster): The Reserve Bank of India (RBI) announced its decision to issue sovereign gold bonds in six tranches starting this month until March next year. The Central bank notification stated that two tranches will be issued during this month, in order to take advantage of the festive season demand for gold and gold products.

According to RBI, customers still prefer to buy physical gold during festive season. However, gold bonds have been witnessing increased demand over the past few years. The fact that gold bonds are easy to purchase and redeem online, makes it a preferred choice for customers in terms of convenience. Further, it does not cost anything for the customer to hold gold bond assets. Also, unlike physical gold, gold bonds are free from security issues such as loss of gold due to theft, burglary etc.

ALSO READ: India Launches New Series of Sovereign Gold Bond Scheme

The first tranche of gold bonds will be issued on October 15^th, for which customers could subscribe from Oct 7^th to 11^th. The issue date for the second tranche will be October 30^th, for which subscriptions will be open from October 21^st to 25^th. Further, RBI has announced monthly issual of bonds from December 2019 to March 2020, whose dates are currently fixed as December 10^th, January 21^st, February 11^th and March 11^th.

The bonds will be denominated in multiples of grams of gold with a basic unit as 1 gram. They will be issued for a period of 8 years. However, customers will be provided with an option to exit the bond after five years RBI noted.