RBI has announced the Sovereign Gold Bonds Scheme 2022-23 – Series III, which will be open for subscription from December 19 to December 23.

What are Sovereign Gold Bonds?

Sovereign gold bonds, which are required by the RBI and are certificates issued against kilos of gold, let people invest in gold without having to worry about storing their physical asset. Given that gold prices are less prone to market swings, sovereign gold bonds serve as a safe investment vehicle for private investors. These assets’ prices have a tendency to increase dramatically over time due to the broad desire for gold, making them a highly promising investment option.

A certain window for subscription is pre-set for these bonds because the RBI is the issuer under the Government of India. During this window, a sovereign gold bond plan is issued in the name of investors in installments. Every two to three months, the RBI typically announces the issuing of new sovereign bonds in a press release, with a one-week window for people to subscribe to this program.

RBI Sovereign Gold Bonds Details: 

The issue price for the most recent tranche of the Sovereign Gold Bond Scheme 2022–23, which will be open for subscription for five days beginning on Monday (December 19, 2022), was fixed at Rs 5,409 per gram of gold, according to a Reserve Bank of India announcement on Friday.

The Sovereign Gold Bond Scheme 2022–23’s Series III subscription period runs from December 19–23, 2022. The issuing price of the Bond during the subscription period will be Rs 5,409 (Rupees Five Thousand Four Hundred Nine only), per gramme, according to a press release from the RBI dated December 16, 2022.

An investor receives a holding certificate in their name after successfully purchasing a sovereign gold bond.

The SGBs will be issued in multiples of grams of gold, with a base unit of one gramme, and will only be sold to resident persons, HUFs, trusts, universities, and charitable organisations, according to the new circular.

The smallest investment amount is one gram of gold, and the maximum subscription amounts are four kilograms for individuals, four kilograms for HUF, and twenty kilograms for trusts and other similar companies per fiscal year (April-March).

In addition, the RBI disclosed that the 2022–23 Series IV SGBs will be issued in the following tranche from March 6–10, 2023. The SGBs would start to be issued on March 14, 2023.

Issue price:

“Price of SGB will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA) for the last three working days of the week prior to the subscription period,” the RBI stated in a briefing on the issue price.

“Investors who subscribe online and pay through digital means will pay less per gram for the SGBs at issue,” it continued.

Paying option:

The SGBs will be paid for in cash (up to a limit of Rs. 20,000), demand draft, check, or electronic banking.

Sales channel:

The RBI announced that SGBs will be sold through designated post offices, recognized stock exchanges, namely NSE of India Limited and BSE Limited, and scheduled commercial banks (aside from SFB, payment banks, and regional rural banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), and either directly or through agents.

Rate of interest:

The investors will receive compensation at a predetermined rate of 2.50 percent annually, payable semi-annually, according to the central bank.

Additional information

SGBs can be used as loan collateral, are suitable for trade, and will be subject to the same KYC requirements as purchases of actual gold, according to the RBI’s circular. Additionally, the Income Tax Act of 1961’s provisions will apply to the taxation of interest on SGBs (43 of 1961).

After discount:

The Indian government has decided to give investors who apply online and pay for their applications using digital means a discount of 50 rupees per gram compared to the nominal value. This decision was made in accordance with the Reserve Bank of India. These investors will pay Rs. 5,359/- (Rupees Five Thousand, Three Hundred and Fifty Nine only) per gram as the issuance price of a gold bond.


The RBI said on Friday that the Series XII gold bonds, which were issued in December 2017 at a price of Rs 2,890 per gramme, will be redeemed on December 17 at a price of Rs 5,409 per gramme, a gain of 89.16%.

In November 2021, the RBI made the gold bonds available at a price of Rs 4,791 per gram. This has since increased to Rs 5,409, representing an increase of 12.89%. With the 2.50 percent interest rate the RBI is offering, the return for investors after a year is 15.39 percent. At the current market price, investors who purchased gold bonds in November 2019 for Rs 3,795 per gram are sitting on a gain of 42.52 percent. Even with the 2.50 percent interest rate, the overall benefit is 45%.

Gold bonds pay interest at a rate of 2.50 percent (fixed rate) every year on the amount of the initial investment, in contrast to banks’ one-year deposit interest rates of 6.70–7%. Semi-annually, interest will be credited to the investor’s bank account, and the final interest will be due at maturity together with the principal.

The drawback is that at maturity, gold bonds are redeemed in Indian rupees, and the price is based on a simple average of the closing price of 999-purity gold over the previous three business days as reported by the IBJA.

Issued so far

In 61 issuances since 2016–17, the government has sold gold bonds totaling 96,283 kg (96.28 metric tons), or Rs 52,080 crore at the current market price. Up until now, investors have prematurely redeemed 876 kilograms of gold bonds.

More SGB details: 

The SGB will have an 8-year term and an exit option that can be exercised beginning in the fifth year on interest payment days. Investors will get the nominal value at a fixed rate of 2.50 percent per year, payable every other year. The minimum and maximum amounts of gold that can be subscribed for each fiscal year by individuals, HUFs, trusts, and other similar entities, respectively, are one gramme, four kilograms, and twenty kilograms (April-March).

The annual cap will apply to both bonds purchased on the secondary market and those subscribed for in various tranches during the government’s first issuance.

Authorised post offices, Scheduled Commercial Banks (aside from Small Finance Banks, Payment Banks, and Regional Rural Banks), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), stock exchanges NSE and BSE, as well as other institutions, will be able to purchase SGBs.

Registration for Sovereign Gold Bonds (SGB)

Step 1: Enter your credentials to access SBI Net Banking

Step 2: From the main menu, select “e-Service.”

Step 3: Select “Sovereign Gold Bond Scheme.”

Step 4: If this is your first time investing, you must register. Choose “Register” from the header tab, followed by “Terms & Conditions” and “Proceed.”

Step 5: Fill in all the information that wasn’t automatically filled. Include the nomination’s details as well.

Step 6: Decide whether your demat account is held by NSDL or CDSL as the depository participant.

Step 7: Enter the client ID and DP ID and click the “Submit” tab.

Step 8: Verify the information and press the “Submit” button.

How to purchase Sovereign Gold Bonds using SBI

Step 1: Enter your credentials to access SBI Net Banking.

Step 2: From the main menu, select “e-Service.”

Step 3: Select “Sovereign Gold Bond Scheme.”

Step 4: Click the header tab and choose “Purchase.”

Step 5: Click “Proceed” after choosing the “Terms and Conditions” tab.

Step 6: Enter the nominee’s information and “Subscription quantity”

Step 7: Select “Submit.”

Step 8: Enter your OTP and press the “Confirm” button.

You can view all the information about your SGB investments on a separate website.

Important Information: RBI Will Issue Two Tranches of Sovereign Gold Bonds in December and March

The SGB will have an eight-year term with a five-year early redemption option that may be utilised on the interest payment date.

The investors will receive a fixed 2.50 percent annual return on the nominal value, payable every six months.

The maximum subscription limit every fiscal year is 4 kilograms for persons, 4 kilograms for HUF, and 20 kilograms for trusts and other similar businesses.

The loan-to-Value (LTV) ratio must be set at the same level as the standard gold loan required from time to time by the Reserve Bank.

The price of SGB is set in Indian rupees using a simple average of the closing price of 999-purity gold for the final three working days of the week before the subscription period, as announced by the India Bullion and Jewellers Association Limited (IBJA).

RBI Sovereign Gold Bonds FAQs:

1. What is a Sovereign Gold Bond (SGB)? Who is the issuer?

Government securities, called SGBs, are valued in kilos of gold. They serve as alternatives to holding actual gold. The issuance price for investors must be paid in cash, and the bonds must be redeemed in cash when they reach maturity. The Reserve Bank issued the bond on behalf of the Government of India.

2. Why should I buy SGB rather than physical gold? What are the benefits?

Since the investor obtains the current market price for the gold at the time of redemption or early redemption, the amount of gold for which he paid is protected. The SGB is a better option than keeping gold in physical form. storage-related maturity, even after changing their residential status from resident to non-resident.

3. Does investing in SGBs carry any risks?

 If the market price of gold falls, there may be a chance of capital loss. The investor does not, however, lose any of the gold units he purchased.

 4. Who can make investments in SGBs?

 Investors in SGB must be Indian citizens, as specified by the Foreign Exchange Management Act of 1999. Individuals, HUFs, trusts, universities, and nonprofit organisations are all examples of eligible investors. Individual investors may keep SGB until early redemption or maturity, even after changing their residential status from resident to non-resident. 

5. What is the minimum and maximum limit for investment?

The bonds are offered in multiples of one gram of gold  in that denomination. The minimum investment in the bond shall be one gramme, and the maximum subscription limit shall be four kilograms for individuals, four kilograms for Hindu Undivided Families (HUF), and twenty kilograms for trusts and other similar institutions, as from time to time announced by the government (April through March). The first application is subject to the cap in a joint-holding situation. The annual ceiling will cover both bonds obtained from the secondary market and those subscribed for by the government during its initial issuance in various tranches. The holdings used as collateral by banks and other financial institutions will not be included in the investment cap.

6. How will interest be paid? What is the interest rate?

The bonds have a 2.50 percent (fixed rate) interest rate on the amount of the initial investment. The investor’s bank account will get interest credits twice a year, and the last interest payment will be due at maturity along with the principal.

7. Can I apply online?

Yes. Through the websites of the listed commercial banks, customers can submit applications online. For investors applying online and paying against the application using digital means, the issue price of the gold bonds will be $50 per gram less than the nominal value.

8. What do I have to do if I want to exit my investment?

Investors can contact the concerned bank, SHCIL offices, Post Office, or agent thirty days prior to the coupon payment date in the event of an early redemption. Premature redemption requests will only be considered if the investor contacts the relevant bank or post office at least one day prior to the coupon payment date. The customer’s bank account, which was provided when applying for the bond, will be credited with the proceeds.

9. Are the bonds available in demat form?

Yes. A demat account may be used to hold the bonds. The application form itself must contain an explicit request for this.

The bonds will be kept on the RBI’s records up until the dematerialization procedure is finished. Following the bond’s allocation, the option for conversion to DEMAT will also be accessible.

10. Are these bonds tradable?

The bonds can be traded as of a date that the RBI will announce. (It should be noted that the only bonds that can be exchanged on stock exchanges are those held in demat form with depositories.) The Government Securities Act of 2006’s provisions permit the bonds to be transferred and sold as well. Bond transfers in part are also an option.

11. How can I get in touch with the RBI to ask questions about sovereign gold bonds?

The Reserve Bank of India has established a special email address for taking public inquiries about sovereign gold bonds. Investors can email this email address with any questions.