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  Business   Market  14 Apr 2020  India to issue sovereign gold bonds at 2.5% interest rate

India to issue sovereign gold bonds at 2.5% interest rate

REUTERS
Published : Apr 14, 2020, 10:37 am IST
Updated : Apr 14, 2020, 10:37 am IST

The bonds will be issued in six tranches until September, and will be sold through banks and designated post offices

 Government to come out with sovereign gold bonds at 2.5% interest. (AP Photo)
  Government to come out with sovereign gold bonds at 2.5% interest. (AP Photo)

Mumbai: India will issue sovereign gold bonds from April onward offering an annual interest rate of 2.50% to domestic investors, a government statement said on Monday.

The bonds will be issued in six tranches until September, and will be sold through banks and designated post offices as part of the government’s market-borrowing programme.

 

The bonds will have a tenor of eight years but investors will have the option to exit after the fifth year.

India’s gold imports have plunged more than 73% year-on-year in March as record prices and the lockdown related to coronavirus squeezed retail demand.

Over the years, the market has witnessed a considerable decline in the demand for physical gold. Sovereign gold bonds not only tracks the import-export value of the asset but also ensures transparency at the same time.

Tags: gold bonds scheme, investors, gold imports, coronavirus, nationwide lockdown, gold bonds, gold market
Location: India, Maharashtra, Mumbai (Bombay)