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Planning to buy Sovereign Gold Bonds? Here's how to do it online

Planning to buy Sovereign Gold Bonds? Here's how to do it online

Planning to buy Sovereign Gold Bonds? Here's how to do it online
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By Nishtha Pandey  Aug 24, 2022 4:00:17 PM IST (Updated)

The issue price for the current tranche of SGB has been fixed at Rs 5,197 per gram. Online subscribers can, however, secure these bonds at a discount of Rs 50 per gram. If you want to invest in the Sovereign Gold Bond scheme, here's how you can do it online.

The second tranche (IInd) of the Sovereign Gold Bond (SGB) scheme for 2022-23 opened for subscription on August 22. The issuance of the bond will take place on August 30. Banks across the nation offer the option of buying it online.

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Steps to buy Sovereign Gold Bonds online
Banks give individuals options to invest in SGB’s online through net banking options with steps being almost similar. Here is a step by step guide on how to buy SGBs online.
Step 1: Log in to your net banking account
Log in to the net banking services using the credentials. It is important to note that individuals investing online must have a valid login ID access to the net banking feature offered by their bank. If an individual does not have a login ID, it is necessary to immediately activate it to proceed further.
Step 2: After logging select ‘e-Service’ from the main menu and then select ‘Sovereign Gold Bond’.
Step 3: First-timers will have to select ‘Register’ and check the 'Terms and Conditions' laid down by the Reserve Bank of India and then select ‘proceed’.
Step 4: Required details for the SGB scheme will have to be entered along with the details of the depository participant from NSDL or CDSL, which hosts the investor’s demat account.
Step 5: After filling out the registration form click on ‘Submit’.
Step 6: Once the registration is completed, the investor will have to click on the purchasing option from the header tab. Those who are already registered can skip the registering process and directly select 'Purchase,' from the header tab.
Step 7: On the new page, subscription quantity and nominee details will have to be keyed in
Step 8: Finally, the investor will have to enter the one-time password (OTP) sent to their mobile phone to complete the process.
SGBs 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 are redeemed in cash on maturity.
The Reserve Bank of India issues SGBs. These bonds, which are issued numerous times over a fiscal year, are government securities and a substitute for actual gold. The scheme has an 8-year lock-in period with three departure options that must be exercised on the dates of interest payments in the fifth, sixth, and seventh years.
The issue price for the same has been fixed at Rs 5,197 per gram. Online subscribers can, however, secure these bonds at a discount of Rs 50 per gram.
If you want to invest in the Sovereign Gold Bond scheme, here's how you can do it online.
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