How to apply for SGBs in next tranche?

Those safe haven investors who had put in their hard earned money in the Government Of India’s (GoI) first-ever sovereign gold bond scheme, issued back in 2015,  would get almost 128 per cent absolute returns when these bonds mature on November 30, 2023. The value of their investment has more than doubled in last eight years. These investors need not apply anywhere to redeem the bonds that they have held on to in last eight years. After November 30, an amount equivalent to value of those bonds would be directly credited to investors’ linked bank accounts. The amount will be credited to those bank accounts that investors had mentioned at the time of subscribing to the bonds.

The RBI had issued the first-ever tranche of SGBs at a price of Rs 2,684 per gram of gold. While, the apex bank  has fixed the redemption price of same bonds at Rs 6,132 per gram of the yellow metal.

If you feel you have missed out on capitalising on high returns that investors got in sovereign gold bonds, then, you can still apply whenever RBI issues bonds in next tranche.

If you also want your portfolio to shine with the yellow metal, then, you can visit the online website of your bank and apply for the gold bond there itself. You can also pay a visit to your bank branch or any designated post office branch. Let’s see how can you subscribe to the gold bonds sitting at the comfort of your home on your bank’s website or app.

Suppose, you have a savings or current account with the private sector lender, Axis Bank. Then, you can apply for the gold bond on its website or on its app, ‘Axis Mobile.’ You will not have to do any paperwork nor will you have to upload any documents.

Steps to apply for sovereign gold bonds with Axis Bank:

1. Open the Axis Mobile app

2. Click on Investments

3. Click on Sovereign Gold Bonds

4. Fill in the investment details like grams to be invested

5. Click on accept terms and conditions

6. Select Yes, if you like to hold your units in your Demat

6a. Enter Demat details which are DP ID and Client ID. (It will take 2-4 weeks for bonds to appear in your Demat account.)

7. Select Yes, if you want to add nomination details

8. Click on Next

9. Verify your personal information like PAN no, permanent address, correspondence address, etc on the new page that opens

10. Click on Proceed

Once you have successfully completed the application process. You will get a Certificate of Holding on the date as announced by the RBI after the subscription window of the tranche is closed. You will get the Holding Certificate via email. This certificate is the proof that you have invested in gold bonds. All your investment details will be mentioned in the certificate.

Applying digitally will give you Rs 50 discount on every gram of the gold bond. You will also save on taxes on maturity proceeds at redemption from fifth year of subscription onwards.

You can also apply from other banks, which may have a different process.