Andhra Bank has announced the launch of the Sovereign Gold Bond Scheme Tranche-II, sponsored by the Centre, for public subscription for five days from January 18 to 22 at all its 2,755 branches.
Under the Gold Bond Scheme, eligible persons (individuals, joint persons, associations and trusts) can apply for gold bonds (minimum 2 gm and maximum of 500 gm). The tenor of the bonds is eight years with provision for premature cancellation after five years.
RBI had notified a rate of interest of 2.75 per cent per annum and a rate of Rs 2,600 per gm for subscriptions under SGB Tranche-II.
The Gold Bond Scheme enables people to invest in gold without physically buying the gold and receive money equivalent to the market value of gold as determined by the RBI at the time of redemption and the interest on the invested amount would be paid semi-annually.
The scheme provides adequate protection against price fluctuations in gold during the period of investment.