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The Sovereign Gold Bond was introduced by the Government of India in 2015 under the Gold Monetisation Scheme. In this scheme, the issues are made open by the government under consultation with RBI for subscription in tranches. RBI also notifies the terms and conditions of the program. SGB rates will be declared by RBI by issuing a press release before issuance of each new tranche. It is the safest way to buy and store gold and it doesn't need any physical lockers to store it. Investors also receive an assured 2.5% interest per annum.

Currently, 2019-20 Series IX Bonds are on offer. They are available for subscription from February 03-07, 2020. The date of issuance is February 11th, 2020. Here is a calendar of issuance for the year 2019-20.

S. No.TrancheDate of SubscriptionDate of Issuance


2019-20 Series V

October 07-11, 2019

October 15, 2019


2019-20 Series VI

October 21-25, 2019

October 30, 2019


2019-20 Series VII

December 02–06, 2019

December 10, 2019


2019-20 Series VIII

January 13-17, 2020

January 21, 2020


2019-20 Series IX

February 03-07, 2020

February 11, 2020


2019-20 Series X

March 02-06, 2020

March 11, 2020

How to purchase Sovereign Gold Bond from Karur Vysya Bank?

Karur Vysya Bank Gold Deposit Scheme

Investors can approach their nearest KVB Bank branch to submit their application for the bond subscription.

KVB customers can also invest through their Netbanking account. 

Investors should submit their duly filled application form along with any one of the following KYC documents:

Mentioning the investor’s PAN Number is mandatory

Features of the Sovereign Gold Bond by Karur Vysya Bank:

Product nameSovereign Gold Bond Scheme 2019-20

Eligibility for Investment

  • Indian Resident Individuals, solely or jointly with another individual or on behalf of a minor child
  • HUFs / Hindu Undivided Families
  • Trust, Charitable Institution and Universities

Bond Form

The bond shall be issued in the form of a holding certificate or demat form, as the user chooses.

Date of Issue

The latest tranche of Series IX is available for subscription from February 03rd – February 07th, 2020. The Bond issue date is February 11th 2020


The Bonds shall be available in denominations of units of one gram of gold or multiples thereof.

Minimum investment

Minimum investment in the Bonds shall be one gram with a maximum limit of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities, notified by the Government from time to time. This limit is for per fiscal year.

Issue Price

The subscription price of the bond shall be fixed by the Government based on the simple average of closing price of 999 purity gold, published by the India Bullion and Jewellers Association Limited, for the last 3 working days of the week preceding the subscription period.


The Bonds shall earn a nominal rate of interest of 2.50% p.a. Interest shall be paid in half-yearly interval and the last interest shall be payable along with principal on maturity.

Sales Offices

Scheduled Commercial Banks (excluding RRBs, Small Finance Banks and Payment Banks), designated Post Offices (as may be notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are authorized to receive applications for the Bonds either directly or through agents.

Payment Options

Payment shall be accepted in Indian Rupees through cash, up to a maximum of ₹ 20,000/-, cheque, DD or by direct debit from your Karur Vysya Bank account.


The Bonds shall mature upon completion of 8 years from the date of issue of the Bonds. Premature redemption of the Bond is permitted after the fifth year of the date of issue of the Bonds and such repayments shall be made on the next interest payment date.

The redemption price shall be fixed based on a simple average of closing price of 999 purity gold, published by the India Bullion and Jewellers Association Limited, for the last 3 working days of the week preceding the maturity date.

There will be no markdown on prevailing price of gold at the time of early redemption (post 5 years) or at maturity.

Loan against Bonds

The Bonds may be used as collateral for loans.

Tax Application

Interest on the Bonds shall 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. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond.

Applying for the Bond

Karur Vysya Bank Customers may visit their nearest branch with KYC documents and submit the application form. They can also apply for it through their Netbanking account.


Yes, available

Transferability of the Bond

Available as per eligibility criteria of the receiver

Tradability of bonds

Yes, the bonds are tradable on stock exchanges

KYC Documentation

Know-your-customer (KYC) norms will be the same as that for purchase of physical gold. KYC documents such as Voter ID, Aadhaar card/PAN or TAN /Passport will be required.

Why is Sovereign Gold Bond a better investment than physical gold?

There are a few important advantages of Sovereign Gold Bond over physical gold.

Gold JewelleryGold Coins/Bars from the bankSovereign Gold Bonds


You have to pay making charges ranging from 5 -20%

Banks charge 10-20% mark-up charges

No mark-up charges if withdrawn after minimum period of 5 years


Loss of making charges, value add charges & taxes

Banks do not take it back, so premium paid at time of purchase is written off



Hassle of storing them. Lockers and insurance charges to be incurred. 

Hassle of storing them. Lockers and insurance charges to be incurred. 

Nil, as they are given in document form or demat form

Tax Implications

Need to pay Long term capital gains tax after 3 years, plus wealth tax

Need to pay Long term capital gains tax after 3 years, plus wealth tax

The interest earned on this bond is taxable at your income tax slab. There is no capital gains tax on the returns from this bond.


Based on market price of gold

Based on market price of gold

Discounted price fixed by Government

Karur Vysya Bank Sovereign Gold Bond FAQs:

1. Are there any risks in investing in SGBs?

There is an amount of risk involved with investing in SGBs. Investors may face the risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.

2.What is the maturity value of the bond?

The tenure of the bond is 8 years. Upon maturity, investors receive the current market value of the invested gold along with the yearly accrued interest of 2.5%.

3. Who is eligible to invest in the SGBs?

The Sovereign Gold Bond can be purchased by Resident Indian Individuals (solely or jointly), HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

4.Can a Minor invest in SGB?

Yes. The application on behalf of the minor has to be made by his/her guardian.

5. Is the maximum limit of 4 Kg applicable in case of joint holding?

The maximum limit will be applicable to the first applicant in case of a joint holding for that specific application.

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