SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. These are issued by the Reserve Bank on behalf of the Government of India.

A more convenient alternative to holding gold in physical form. Risks and costs of storage are eliminated. Issued by the RBI. Hence safe and secure investment. Apart from the appreciation in gold price, a fixed interest @ 2.5% per year is paid on the initial investment amount. Interest is credited semi-annually to the bank account of the customer and the last interest is paid on maturity along with the principal. SGBs carry 8 year maturity period with a 5 year lock-in. Capitals gains are exempt from tax if units are held till maturity. These bonds can be held in Demat form. There is an additional Rs. 50 discount on the issue price, if investment is made online.

Individuals (non-minors) or HUF customers with existing Axis Bank Savings or Current Account can invest online via Axis Mobile App or Axis Internet Banking. Online investing is just a 2-step process with no requirement to do any paperwork or uploading of documents. Visit Axis Mobile App or Axis Internet Banking and visit the Investments section.

In the online journey, only singly held account holders can invest. However, there is a provision to nominate.

Sovereign Gold Bonds are issued in denominations of one gram of gold and in multiples thereof. Minimum investment is 1 gm with a maximum limit of 4 kg for individuals and Hindu Undivided Families (HUFs) per financial year. Trusts and similar entities (notified by Govt.) can invest up to 20 kg per financial year. However, they are required to visit the branch to invest.

If customers meet the eligibility criteria, they will be allotted the units post the end of the tranche.

Customers are issued Certificate of Holding on the date of issuance(Which is communicated by RBI post-closing of Tranche) of the SGB. Certificate of Holding is sent via email. In case of non-receipt of email, customers can share the details to cms.easypay@axisbank.com for Certificate of Holding

RBI declares the price of 1 gm of SGB just before the tranche. The nominal value of Gold Bonds is in Indian Rupees fixed 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 business days of the week preceding the subscription period. The rate doesn’t change during the 5-day tranche period.

Tenure of the bond is 8 years. Early encashment/redemption of the bond is allowed after the fifth year from the date of issuance. The bond will be tradable on exchanges if held in Demat form. It can also be transferred to any other eligible investor. However, currently encashment/premature redemption facility is not available through our online SGB Module. After completion of 5 years if invester wants to redeem after 5 years , he can do so at the respective Axis Bank Branch. In case of premature redemption, investors would need to approach the bank branch at maximum thirty days and minimum one day before the interest payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.

The investor will be advised one month before maturity. On the date of maturity, the maturity proceeds will be credited to the same bank account used at the time of investment. In case there are changes in any details, such as, account number, email ids, then the investor must intimate the Bank promptly. Redemption price shall be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewellers Association Limited.

Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted only on maturity that is 8 years. The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond.

TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.

The bonds can be held in demat account. Customer will be required to enter his/her Demat details (DP ID & Client ID) while applying for SGB using online application. It usually takes 2-4 weeks for Bonds to appear in customer’s Demat account.

Investors can mail their queries to this email id cms.easypay@axisbank.com