First Sovereign Gold Bond (SGB) maturity date is Nov 30; how to check bank account to receive redemption money
The Reserve Bank of India has announced the final redemption date for the Sovereign Gold Bond (SGB) Scheme SGB 2015-I, which is set on November 30, 2023.The price for the final redemption due on November 30, 2023 shall be Rs 6,132 per unit of SGB based on the simple average closing price of gold for the week November 20-24, 2023. SGB was purchased for Rs 2,684 per gram of gold.
Redemption price of first ever Sovereign Gold Bond (SGB) tranche announced; investors to earn 11%
SGB Certificate of Holding
The customers will be issued Certificate of Holding on the date of issuance of the SGB. Certificate of Holding can be collected from the branches or is sent directly to their e-mail ID from RBI, if the e-mail ID is provided in the application form.
How to check bank account to receive redemption money
One month before maturity, the investor will be notified of the bond's upcoming maturity, as per RBI’s FAQs on SGB. The maturity funds will be credited to the bank account as per the information on record on the maturity date. If any details, such as account numbers or email addresses, change, the investor must notify the bank, SHCIL, Post Office immediately.Note that interest of 2.75% will be credited to the bank account semiannually, you may check your bank statement to see which bank is linked to the SGB.
Investors should ensure that the bank account they have specified is active.
If the investment is made through a bank, demat account, you can login and check the details. However, the amount will be sent to the linked bank account.
According to the ICICI Bank FAQs, “Both interest and redemption proceeds will be credited to the bank account number furnished in the application form.”
Interest will be credited semiannually to the bank account of the investor and the last interest will be payable on maturity along with the principal.
The receiving office will inform the investor of the date of maturity of the Gold Bond one month before its maturity.
Premature redemption
According to the RBI FAQs, “In case of premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon payment date. Requests for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.”SGB details
Every financial year, the RBI announces the issuance of SGB tranches. As of now, an investor is limited to 4 kg per individual each financial year, with a minimum investment of 1 gram. A person must indicate in the application form how much they wish to invest in order to make an investment. The quantity of gold invested is determined by the RBI's indicated issuance price. The balance amount is refunded to the investor's bank account.
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This story originally appeared on: India Times - Author:Faqs of Insurances
