Sovereign Gold Bond: Government may shut down Sovereign Gold Bond Scheme! Know the reason..

People investing in Sovereign Gold Bond may get a shock. Sources related to the matter told Moneycontrol that the government may discontinue the Sovereign Gold Bond (SGB) scheme or reduce its installments. It can take this decision after reducing the customs duty on gold and silver in the Union Budget.

The reduction in custom duty is expected to reduce the demand for Sovereign Gold Bond. After the reduction in customs duty, SGB prices on NSE fell by 2-5 percent.

What is a Sovereign Gold Bond? Let us tell you that the Sovereign Gold Bond Scheme was started in 2015. RBI issues Sovereign Gold Bond on behalf of the government, so it has a government guarantee. There is a guaranteed return on investment in it. There is an annual interest of 2.5 percent on investment in it. This money is deposited in the bank account of investors every 6 months. The first installment of SGB came on November 30, 2015. It matured in November 2023. The 2016-17 series of the SGB scheme came on August 1, 2016. This series is going to mature in August 2024.

Limit to buy Sovereign Gold Bond.
It is worth noting that in the Sovereign Gold Bond Scheme, a person can buy a maximum of 4 kg of gold bonds in a financial year. At the same time, the minimum investment must be 1 gram. At the same time, trusts or similar institutions can buy bonds up to 20 kg. Please note that applications are issued in at least 1 gram and its multiples.