Instrument
|
Rate of interest w.r.t. 01.07.2018 to 30.09.2018
|
Rate of interest w.r.t. 01.10.2018 to 31.12.2018
|
Compounding frequency*
|
Savings Deposit
|
4.0
|
4.0
|
Annually
|
1 Year Time Deposit
|
6.6
|
6.9
|
Quarterly
|
2 Year Time Deposit
|
6.7
|
7.0
|
Quarterly
|
3 Year Time Deposit
|
6.9
|
7.2
|
Quarterly
|
5 Year Time Deposit
|
7.4
|
7.8
|
Quarterly
|
5 Year Recurring
Deposit
|
6.9
|
7.3
|
Quarterly
|
5 Year Senior Citizen
Savings Scheme
|
8.3
|
8.7
|
Quarterly and paid
|
5 Year Monthly Income
Account
|
7.3
|
7.7
|
Monthly and paid
|
5 Year National
Savings Certificate
|
7.6
|
8.0
|
Annually
|
Public Provident Fund
Scheme
|
7.6
|
8.0
|
Annually
|
KisanVikasPatra
|
7.3 (will mature in
118 months)
|
7.7 (will mature in
112 months)
|
Annually
|
SukanyaSamriddhi
Account Scheme
|
8.1
|
8.5
|
Annually
|
|
Tenors
|
Earlier rates
|
Revised from 01.07.2017
|
Earlier rates for senior citizens
|
Revised for senior citizens from
01.07.2017
|
|
7 days to 45 days
|
5.5
|
5.5
|
6
|
6
|
|
46 days to 179 days
|
6.5
|
6.5
|
7
|
7
|
|
180 days to 210 days
|
6.5
|
6.5
|
7
|
7
|
|
211 days to less than 1 year
|
6.5
|
6.5
|
7
|
7
|
|
1 year
|
6.9
|
6.75
|
7.4
|
7.25
|
|
Above 1 year to 455 days
|
6.9
|
6.5
|
7.4
|
7
|
|
456 days to less than 2 years
|
6.75
|
6.5
|
7.25
|
7
|
|
2 years to less than 3 years
|
6.25
|
6.25
|
6.75
|
6.75
|
|
3 years to less than 5 years
|
6.25
|
6.25
|
6.75
|
6.75
|
|
5 years and up to 10 years
|
6.25
|
6.25
|
6.75
|
6.75
|
Sl. No.
|
Item
|
Details
|
1
|
Product name
|
Sovereign
Gold Bond 2017-18 – Series II
|
2
|
Issuance
|
To be
issued by Reserve Bank India on behalf of the Government of India.
|
3
|
Eligibility
|
The
Bonds will be restricted for sale to resident Indian entities including
individuals, HUFs, Trusts, Universities and Charitable Institutions.
|
4
|
Denomination
|
The
Bonds will be denominated in multiples of gram(s) of gold with a basic
unit of 1 gram.
|
5
|
Tenor
|
The
tenor of the Bond will be for a period of 8 years with exit option from 5th year
to be exercised on the interest payment dates.
|
6
|
Minimum size
|
Minimum
permissible investment will be 1 gram of gold.
|
7
|
Maximum limit
|
The
maximum amount subscribed by an entity will not be more than 500 grams per
person per fiscal year (April-March). A self-declaration to this effect will
be obtained.
|
8
|
Joint holder
|
In case
of joint holding, the investment limit of 500 grams will be applied to the
first applicant only.
|
9
|
Issue price
|
Price
of Bond 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 for the week (Monday to Friday) preceding the
subscription period. The issue price of the
Gold Bonds will be ` 50 per gram less than the nominal value.
|
10
|
Payment option
|
Payment
for the Bonds will be through cash payment (upto a maximum of Rs. 20,000) or
demand draft or cheque or electronic banking.
|
11
|
Issuance form
|
The
Gold Bonds will be issued as Government of India Stocks under GS Act, 2006.
The investors will be issued a Holding Certificate for the same. The Bonds
are eligible for conversion into demat form.
|
12
|
Redemption price
|
The
redemption price will be in Indian Rupees based on previous week’s
(Monday-Friday) simple average of closing price of gold of 999 purity
published by IBJA.
|
13
|
Sales channel
|
Bonds will be sold through banks, Stock Holding
Corporation of India Limited (SHCIL), designated post offices as may be
notified and recognised stock exchanges viz., National Stock Exchange of
India Limited and Bombay Stock Exchange, either directly or through agents.
|
14
|
Interest rate
|
The investors will be compensated at a fixed rate of
2.50 per cent per annum payable semi-annually on the nominal value.
|
15
|
Collateral
|
Bonds can be used as collateral for loans. The
loan-to-value (LTV) ratio is to be set equal to ordinary gold loan mandated
by the Reserve Bank from time to time.
|
16
|
KYC Documentation
|
Know-your-customer (KYC) norms will be the same as
that for purchase of physical gold. KYC documents such as Voter ID,
Aadhaar card/PAN or TAN /Passport will be required.
|
17
|
Tax treatment
|
The interest on Gold Bonds shall be taxable as per
the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax
arising on redemption of SGB to an individual has been exempted. The
indexation benefits will be provided to long term capital gains arising to
any person on transfer of bond
|
18
|
Tradability
|
Bonds will be tradable on stock exchanges within a
fortnight of the issuance on a date as notified by the RBI.
|
19
|
SLR eligibility
|
The Bonds will be eligible for Statutory Liquidity
Ratio purposes.
|
20
|
Commission
|
