Understanding Sovereign Gold Bonds (SGBs) and Application Process

Investing in Sovereign Gold Bonds (SGBs) can be done physically through agents or receiving authorities. However, adhering to the guidelines set by the Reserve Bank of India (RBI) and the Indian government, applications need to be submitted during regular business hours in branches during the membership week as specified. The prescribed application form A should be used for membership.

PAN Card

With each application, investors should attach the ‘PAN details’ issued by the Income Tax Department. Where necessary, essential details will be obtained from applicants.

Investor ID

The Investor ID received from RBI’s E-Kuber is a unique ID created when applying for SGBs. If the applicant already possesses an Investor ID issued via RBI’s E-Kuber portal for any previous installment, it will be linked by the investor for subsequent applications.

Existing Investor ID

Upon acceptance of the application, the current Investor ID details need to be provided by the applicant. Failure to do so might result in rejection during upload to the E-Kuber portal.

Payments for Applications

For SGB membership, payments up to a maximum of INR 20,000/- will be accepted in Indian Rupees through cash or via check/demand draft/electronic banking. The check/demand draft should be made in favor of the RBI. Payments for SGBs held in the RDG account will be processed only through electronic banking.

Incomplete Applications

RO must ensure that the application is complete in all aspects as incomplete applications might face rejection.

Investor’s Email ID

For better customer service, ROs can facilitate online application for investors. While providing online services, it is RO’s responsibility to accurately capture the applicant’s details, mode of holding, and other specifics according to the specified rules and conditions in the notification fields.

Acknowledgment Receipt

Upon receiving the complete application as per the details provided above, RO will issue an acknowledgment receipt in Form B.

Time Consideration

If all the necessary requirements for membership within the specified period are not fulfilled, incomplete applications might face rejection.

Cancellation of Bonds

Cancellation of the bond is permissible until the issue is closed. However, partial cancellation of an application is not allowed. Any request to cancel the bond post the issue closure will not be considered under any circumstances.

Confirmation

It is imperative for ROs to enter or upload data for received membership in RBI’s E-Kuber portal. They will ensure the accuracy of the data to prevent any inadvertent errors. Immediate confirmation of application receipt will be provided. Additionally, a confirmation scroll will be provided for file uploads to update their database.

Interest Payment

Applicants are eligible for interest payments on the membership amount at the savings bank rate from the date of receipt of the application/deposit until the allotment date. In case the application is rejected due to any reason from the investor’s end, no interest will be payable.