🎁Sovereign Gold Bonds:
📢RBI fixes the final redemption price at Rs 6,938 for the SGB August 2016 issue.
🥉The gold bonds were issued at a price of Rs 3,119 per gram in August 2016 by the Reserve Bank of India (RBI). The RBI has designated August 5, 2024, as the final redemption date for the scheme.
🥈The Reserve Bank of India has announced the final redemption price for Sovereign Gold Bonds (SGBs) issued on August 5, 2016. The central bank has fixed the final redemption price at Rs 6,938 per gram, which is 122 percent higher than the issued price. The gold bonds were issued at a price of Rs 3,119 per gram in August 2016 by the Reserve Bank of India (RBI). The RBI has designated August 5, 2024, as the final redemption date for the scheme.
🥇Adjusting for interest, specifically set at 2.75% payable semi-annually on the initial investment amount (issue price), the absolute return totals a little over 144%. When annualised, this equates to a return of approximately 12% CAGR. The final interest amount accumulated on the bonds will be disbursed directly to the holder's bank account, in addition to the redemption amount.
🎖️SGBs are issued by the government of India with a tenure of 8 years. The SGB August 2016 issue is reaching maturity, necessitating redemption. Unlike the optional redemption offered by the Reserve Bank of India at the end of the fifth year, the redemption of this bond is mandatory.
🏅According to official sources, at present, the government does not have immediate plans to introduce a substitute for the SGB scheme if the decision is made to cease its operation.
🥉The future of the scheme will be deliberated upon during a meeting scheduled in September 2024. This meeting will align with the RBI's borrowing calendar meeting, where key decisions regarding the scheme will be taken.
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