Andhra Bank will open its Sovereign Gold Bonds 2017-18 Series-II for public subscription from July 10 to 14 at all its branches across the country.
The bonds will be restricted for sale to resident Indian entities, including individuals, HUFs, Trusts, Universities and Charitable Institutions, which can apply for gold bonds (Minimum 1 gram and maximum 500 grams).
The tenor of the Bonds is 8 years, with a provision of premature cancellation after 5 years.
The Reserve Bank of India 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 is arrived at based on the simple average of the closing price gold as published by the IBJA in the preceding week to the issue.
The issue price is fixed at ₹50 less than the nominal price. The issue price of this tranche has been fixed at ₹2,780 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 the RBI at the time of redemption, besides earning interest on the invested amount semi-annually.