Andhra Bank Launches Gold Bond Scheme

16 January, Hyderabad

Andhra Bank today announced the opening of Sovereign Gold Bond Scheme Tranche-II sponsored by Central Government for public subscription from January 18 to 22 for a period of five days in its 2755 branches spread all over the country.

Under the Scheme, eligible persons (Individuals, Joint persons, Associations and Trusts) can apply for gold bonds (Minimum two grams and maximum of 500 grams). The tenor of the Bonds is eight years with provision of premature cancellation after five years, a Bank statement said here today. RBI has notified a Rate of Interest of 2.75 per cent per annum and a rate of Rs 2600 per gm for subscriptions under SGB Tranche-II.

The Gold Bond Scheme enables people to invest in gold without physically buying it and receive money equivalent to the market value of gold as determined by RBI at the time of redemption and the interest on the invested amount will be paid semi-a. The scheme provides adequate protection against the price fluctuation in gold during the period of investment, the Statement added.