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  • Alternative to investment in physical gold.
  • Elimination of risks associated to storage of physical gold.
  • Gold Bonds are eligible to be converted into Demat form.
  • Gold Bonds may be used as collateral security for availing loan.
  • Exemption of Capital Gains Tax arising from redemption of gold bonds.
  • Half yearly interest payments @ 2.50%.
  • Discount for Online Investors.
Subscription Limit The Bonds will be issued in denominations of one gram of Gold or multiples. Minimum limit – 1 Gram Maximum limit – 4kg for Individual and HUFs, 20kgs for Trust In case of joint holding, the above limits are applicable to first applicant only.
Duration The Gold bonds shall be repayable in Indian Rupees on expiration of 8 years; premature withdrawal is permitted after 5th year and such repayments will be made on next interest payment date.
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 last 3 working days of the week preceding the subscription period.
  • The Issue Price of the Gold Bonds will be Rs 50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through Digital Mode.
Tax Benefits Interest on the Bonds shall be taxable as per the provisions of the IncomeTax Act, 1961 (43 of 1961). The Capital Gains Tax arising from 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.
  • An individual resident in India for self or on behalf of minor or jointly with other individual.
  • Trusts, HUFs, Charitable Institution or University.
  • Every application must be accompanied by the PAN Number.
  • The interest shall be paid at fixed rate of 2.50% per annum on the nominal value of bond. It is payable in half-yearly rests and last interest shall be payable along with the principal on maturity.
  • Click here for SGB Premature Closure request Form 2012022.
  • Half-Yearly interest pertaining to the SGB will be credited only to the linked SB account provided at the time of opening of account. In case the customer wishes to change the linked interest credit account, the customer has to approach the branch for modification.
  • You can apply through following modes :

    • Online Mode :
      • Internet Banking.
      • Mobile Banking App.
    • Offline Mode :
      • Visit nearest branch of Canara Bank.
      • To redirect on the login page, please Click Here.
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    Last updated on 29-09-2023 12:11 PM

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