The Central Government has launched ‘Sovereign Gold Bonds Scheme‘ as an alternative to purchasing physical gold. The application forms for subscribing to seventh tranche of Sovereign Gold Bonds issue are available from 27th February, 2017 to 3rd March, 2017. The bonds will be issued on 17th March, 2017.
Sovereign Gold Bond Scheme is an indirect way of investing in Gold. Instead of buying Physical Gold, investors can invest in gold in a paper form through Sovereign Gold Bond Scheme. The under-lying asset for these bonds is Gold. These bonds will track the price of gold, plus an extra interest earning on top of that.
Bonds will be issued on behalf of the Government of India by RBI (Reserve Bank of India). These will be marketed through Post Offices / Banks / NBFCs (Non-banking Finance Companies) and by various brokers/agents (including National Saving Certificate (NSC) agents). Gold Bonds can now be purchased from NSE and BSE, besides all Bank branches and select Post Offices.
Sovereign Gold Bonds 2016-2017 : Application Form
The application forms for buying Sovereign Gold Bonds are available at banks (all schedule commercial banks) or at designated post office branches. You may click on the below image to download the application form (Form A).
- The gold bonds can be applied in joint names. In case if you are applying on behalf a minor, you have to submit an attested copy of the birth certificate (minor’s) from the School or Municipal Authorities for verification. Kindly note that nomination facility is not available in case the investment is on behalf of a minor. Also mention the application status as Resident Individual or HUF or Trust etc.,
- You have to provide the investment details. The minimum permissible investment will be 1 unit (i.e. 1 gram of gold) and the maximum buying limit is 500 gms per person per fiscal year.
- The issue price for sixth Tranche Gold Bonds (Oct to Nov 2016) has been fixed at Rs 3,007 per gram. However, the Govt has decided to issue the Gold bonds at a discounted price of Rs 2,957 per gram (a discount of Rs 50). You also have to provide the mode of payment (cash / cheque / electronic transfer. cash payment upto a maximum of Rs. 20,000).
- If you wish to hold the Sovereign Gold Bonds in ‘Demat‘ form, you have to provide your ‘depository participant’ details. Even if you subscribe to physical bonds, you can still convert them into demat form in future.
- If you wish to receive the interest payments & maturity payment (redemption payment) through electronic mode (direct credit to your bank account), you can provide your bank account details.
Important instructions
- In case the application is submitted by a Power of Attorney (POA) holder, please submit original POA for verification, along with an attested copy.
- Please note that nomination facility (maximum two nominees) is available to a Sole Holder or all the joint holders (investors) of an SGB. The nomination will be registered at the Office of Issue and a Certificate of Registration will be issued to the holder. The existing nomination can be cancelled or altered by a request to the Office of Issue.
- In case nominee is a minor, please indicate the date of birth of the minor and a guardian can be appointed. Nomination facility is not available in case the investment is on behalf of minor.
- In case of change of bank account, you can notify the change and get the details updated.
- You have to submit KYC documents along with the application form.
- The interest on the bond is paid half-yearly. The payment of Interest amounts will be done through the bank A/c provided in the Application form (or) to your bank A/c that is linked to the Dmat, as the case may be. Post maturity date, interest amount is not payable on gold bonds.
- The designated banks may soon provide online application facility too.
You may also like reading my article – “Sovereign Gold Bonds Scheme – Features, FAQs & Review“.
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I I hold SGB RBI – IV issued on 21 July 2016. Currently interest is credited in KVB. I want to receive this in SBI. Please let me know what form to use
Dear Samy,
You can visit the concerned banker/broker where you have applied for SGB and get your (new) bank account details updated for SGB.
Sir, I had purchased gold bond from post office. As my bank was merged with another bank my account no. has changed . How do I update my new account no. Should I approach the post office from where I purchased the bond or the bank which got merged. Please advise
Dear Smitha,
Yes, you can approach the concerned Post office branch and can get your bank a/c number updated.
Hi Sreekanth, I have purchased gold bond through ICIC bank netbanking salary account, Now I wanted to close my ICICI bank account due to change in job. What is procedure to update saving bank account in SBG gold bond.
Dear Mr Joshi,
Dear Rashmi,
As per the RBI operational guidelines on SGBs :
Change of address, correction of name, change of account number and other miscellaneous requests in case of bonds held in the form of stock certificates.
The requests of the customer (in plain paper) in case of bonds held in the form of BLA with RBI supported by the Certificate of Holding may be processed by the ROs through the EKuber portal after verification of the particulars and subject to their satisfaction. The ROs may call for additional documents if deemed necessary. The requests may be entered by
ROs in the RBI portal for giving effect to the changes.
RO here stands for Receiving offices.
So, you may have to contact the bank branch (office) where you have applied for SGBs..
Suggest you to first get the new bank account details updated and then close your icici bank account.
SIR I HAVE PURSHASED GOLD BOND AND THE INTT HAS BEEN CREDITED TO MY CURRENT ACCOUNT NOW THE CURRENT ACCOUNT HAS BEEN CLOSED BY THE BANK HOW I CAN CHANGE THE ACCOUNT FROM C/A TO SAVING BANK ACCOUNT REGARDS RASHMI JAIN
Dear Rashmi,
As per the RBI operational guidelines on SGBs :
Change of address, correction of name, change of account number and other miscellaneous requests in case of bonds held in the form of stock certificates.
The requests of the customer (in plain paper) in case of bonds held in the form of BLA with RBI supported by the Certificate of Holding may be processed by the ROs through the EKuber portal after verification of the particulars and subject to their satisfaction. The ROs may call for additional documents if deemed necessary. The requests may be entered by
ROs in the RBI portal for giving effect to the changes.
RO here stands for Receiving offices.
So, you may have to contact the bank branch (office) where you have applied for SGBs..
My father purchase gold bond as on 03/03/2017, now my father was passed away on 24/08/2020.
what is the procedure for this claim….
Dear Ashwin,
The nomination would have been registered at the Office of Issue and a Certificate of Registration would have been issued to the holder (your father).
So, suggest you to visit the concerned bank/Issuer to get the proceeds.
SOVEREIGN GOLD BONDS SCHEME- 2016.17
my name is Naresh Chand Kuchal,
my gold bond certificate misplaced , how to issue duplicate certificate
Dear Naresh ..Kindly contact your service provider..
I applied for SGB 4th series on October 2019. After applying through online SBI account I noticed that I have entered wrong DMAT no. and I received the certificate too in my email with the same wrong dmat no. It is because of this I could not see my bonds in my DMAT account. Please suggest me how can I correct this mistake and how can I contact RBI for change of my dmat no.?
Dear Sandeep,
You can contact your banker and get it rectified.
I have SGB in physical paper mode. how I can get it to demat form. I have already having demat account.
Dear Mahaveer,
Yes, you can convert your physical holdings into demat mode. All you need to do is to fill up the Dematerialisation Request form (DRF) and submit the physical certificate along with the form to your banker/intermediary.
I subscribed for the sovereign gold bond through IDFC bank .I received the certificate through mail from RBI.i was unable to open that certificate.while I tried to open ,it was showing the error invalid file format unable to open .by using software ,can I open that certificate.
Dear GOVINDARAJ ..It’s a technical issue, you may try downloading the file through some other system (or) take help of any tech guy. Else, you can contact your banker and get the prints of certificates by providing the Application numbers.
change file name abcd.pdf and it will open