RBI fixes issue price of gold bond at Rs 2,684 per gm

The Reserve Bank of India (RBI) has fixed the issue price of sovereign gold bond — which will be open for subscription from Friday — at Rs 2684 per gm of gold.

The rate has been fixed on the basis of a simple average of closing price for gold of 999 purity of the previous week (October 26 to 30) published by the India Bullion and Jewellers Association Ltd (IBJA), the central bank said in a statement. These bonds will be issued on November 26 and applications for the bond will be accepted from November 5 to 20.

Only domestic investors are allowed to subscribe to these bonds, which will offer an annual interest rate of 2.75 per cent. The minimum amount that an investor has to buy is two gms, while the upper limit is 500 gms per financial year.

The minimum amount that an investor have to buy is 2 units, that is 2 grams of gold while the upper limit is fixed at 500 grams per person per fiscal year.