08 July, Hyderabad
Andhra Bank will open Soverign Gold Bonds 2017-18 Series-II notified by Government of India for public subscription from July 10 to 14 at all its branches spread over the country.
The Bonds will be restricted for sale to resident Indian entities including individuals, HUFs, Trusts, Universities and Charitable Institutions who can apply for gold bonds (Minimum 1 gram and maximum of 500 grams). The tenor of the Bonds is 8 years with provision of premature cancellation after 5 years, a Bank statement said here Saturday..
RBI has notified a Rate of Interest of 2.50 per cent per annum on the initial investment based on nominal value. The nominal price of Gold, which is arrived, based on simple average of closing price gold as published by the IBJA in the preceding week to the issue.
The issue price is fixed Rs. 50 less than the nominal price. The issue price of the Sovereign Gold Bond for this tranche has been fixed Rs 2780 per gram of gold.
The Gold Bond Scheme enables people to invest in gold without physically buying the gold and receive money equivalent to the market value of gold as determined by RBI at the time of redemption besides earning interest on the invested amount semi-annually.
The scheme provides adequate protection against the price fluctuation in gold during the period of investment, the statement said and requested all to avail the benefits of the scheme and approach any of Andhra Bank branches for subscriptions of the Bonds. Customers having Internet banking facility can apply online for Sovereign Gold Bonds, the statement added.