The scheme allows investors to buy gold at a discounted rate.
Under the scheme, RBI has fixed the price of gold at Rs. 5,923 per gram for offline purchases.
Investors who buy SBG online will get an additional discount of Rs. 50 per gram, bringing the price down to Rs. 5,873 per gram.
SBG investors will earn a fixed interest rate of 2.5% per annum.
The bonds have a maturity period of 8 years.
Investors can exit the bonds after 5 years, but they will not earn any interest for the remaining period.
SBGs can be purchased offline from commercial banks, some designated post offices, NSE, BSE, and Clearing Corporation of India Limited (CCIL).
The minimum investment amount for SBGs is Rs. 500.
SBGs are a good investment option for investors who want to diversify their portfolio and invest in gold without having to physically store the metal.