Personal Finance

How to buy sovereign gold bonds online from SBI? Here's your guide

Updated : December 31, 2020 06:47 PM IST

The ninth tranche (IXth) of the Sovereign Gold Bond (SGB) scheme for 2020-21 will close for subscription on Friday i.e. January 1, 2021.

The issue price for the same has been fixed at Rs 5,000 per gram of the yellow metal.

The ninth tranche (IXth) of the Sovereign Gold Bond (SGB) scheme for 2020-21 will close for subscription on Friday i.e. January 1, 2021. The issue price for the same has been fixed at Rs 5,000 per gram of the yellow metal. Online subscribers can, however, secure these bonds at a discount of Rs 50 per gram.

SGB is issued by the government, for which investors get a holding certificate. It comprises government securities denominated in gold wherein investors are required to pay the issue price in cash.

Investors can invest in SGBs through their demat accounts or via online banking. Several banks such as the State Bank of India (SBI) provide the option of buying SGBs online.

Here are the steps to invest in SGB via SBI:

Step 1: Log in to SBI net banking account using credentials

Step 2: After login, click on eServices and go to ‘Sovereign Gold Bond’

Step 3: Check the debit account that is to be used

Step 4: Select 'terms and conditions' and click on ‘proceed’

Step 5: Fill the registration form. This is a one-time registration that may require some mandatory inputs

Step 6: Now, click on submit. The purchase form appears which is to be filled by entering the subscription quantity and nominee details.

Step 7: Again, click on ‘submit’

As per RBI instructions, every application must be accompanied by the 'PAN Number’ issued by the Income Tax Department to the investor(s) as the PAN number of the first/ sole applicant is mandatory.

Also read: Here's what makes SGB an attractive investment

The maximum limit of subscribed will be 4 kg for individuals, 4 kg for HUF and 20 kg for trusts and similar entities per fiscal year (April-March) notified by the government from time to time. The annual ceiling will include bonds subscribed under different tranches during initial issuance by the government and those purchase from the secondary market.

The bonds will be restricted for sale to resident Indian entities including individuals (in his capacity as an individual, or on behalf of a minor child, or jointly with any other individual), HUFs, Trusts, Universities and Charitable Institutions.

How to buy sovereign gold bonds online from SBI? Here's your guide

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