RBI to issue next tranche of Sovereign Gold Bonds from December 19-23

Subsequent tranche to open in March 2023

The Reserve Bank will issue two tranches of Sovereign Gold Bonds, which will open for public subscription in December and March.

Sovereign Gold Bonds (SGBs) 2022-23-Series III will open for subscription during the December 19-December 23 period and the 2022-23-Series IV during March 06-10, 2023, the Finance Ministry said in a statement on Thursday.

These bonds are issued by the Reserve Bank of India (RBI) on behalf of the government.

The SGBs will be sold through Scheduled Commercial banks (except Small Finance Banks, Payment Banks and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and stock exchanges -- NSE and BSE.

The tenor of the SGB will be for a period of eight years with an option of premature redemption after the fifth year to be exercised on the date on which interest is payable, the Ministry said.

"The investors will be compensated at a fixed rate of 2.5% per annum payable semi-annually on the nominal value," it said.

The maximum limit of subscription is 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year. The bonds can be used as collateral for loans.