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What is Sovereign Gold Bonds Scheme?

The Government of India has launched the Sovereign Gold Bonds Scheme. Investors will get returns that are linked to gold price, the scheme offers the same benefits as physical gold. They can be used as collateral for loans and can be sold or traded on stock exchanges.
 
BENEFITS
HOW TO IT?
Sovereign Gold Bonds will be issued on payment of rupees and denominated in grams of gold. Minimum investment in the bond shall be 1 gram. The bonds can be bought by Indian residents or entities and is capped at 500 grams.
WHERE TO BUY?
Investors can apply for the bonds through scheduled commercial banks and designated post offices. NBFCs, National Saving Certificate (NSC) agents and others, can act as agents. They would be authorised to collect the application form and submit in banks and post offices.
BSE and NSE are included as receiving offices, apart from the commercial banks, SHCIL, designated post offices
WHO IS ISSUING THE BONDS?
The Bonds are issued by the Reserve Bank of India on behalf of the Government of India. The bonds are distributed through banks and designated post offices. This should make subscribing to the bonds an easy affair. During redemption, "the price of gold may be taken from the reference rate, as decided, and the Rupee equivalent amount may be converted at the RBI Reference rate on issue and redemption".