What are Sovereign Gold Bond Scheme?

Sovereign Gold Bond Schemes 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.

 

A sovereign gold bond scheme (SGB) is issued to resident Indian entities by the Reserve Bank of India (RBI) on behalf of the central government. This is a long-term form of market instrument.

The government launched the sovereign gold bond scheme in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings, used