| Section | Description |
|---|---|
| What are SGBs | Government securities denominated in grams of gold, issued by RBI on behalf of Government of India |
| Why Issued | Fiscal Stability: Reduce demand for physical gold and provide a secure avenue for gold investment |
| Features | Price: ₹5,923 per gram; ₹5,873 for digital payments; Interest Rate: Fixed at 2.5% p.a., paid semi-annually; Maturity: 8 years, option for premature redemption after fifth year; Tax Benefits: Capital gains at maturity are tax-exempt, interest is taxable |
| Benefits | Earnings: 2.5% annual interest; Tax Efficiency: No capital gains tax if held until maturity; Liquidity: Tradable on stock exchanges; Convenience: Can be held in a demat account |
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