All the over 2,800 branches of Andhra Bank across the country will accept applications for subscription to the Series III of the Sovereign Gold Bond Scheme (2016-17) that opens on Monday.
The scheme, notified by the Government of India, will remain open for public subscription from October 24 to November 2 at all the 2,853 branches, Andhra Bank said on Saturday.
The issue price of the Sovereign Gold Bond for this tranche would be Rs.2,957 per gram of gold.
Resident Indian entities, including individuals, HUFs, trusts, universities and charitable institutions can apply for the bonds. While minimum subscription is one gram, maximum is 500 grams. The tenure of the bond is eight years with provision of premature cancellation after five years.
The Gold Bond Scheme facilitates investment in gold without physically purchasing the precious metal. Such investors would receive the money equivalent to the market value of gold as determined by RBI at the time of redemption besides earning interest on the invested amount semi-annually.
The scheme, a release from Andhra Bank said, provides adequate protection against price fluctuation in gold during the period of investment. Customers having Internet banking facility could apply online for the bonds, the bank said.
RBI has notified a rate of interest of 2.50 per cent/per annum on the initial investment based on nominal value. The issue price of bond is fixed Rs. 50 less than the nominal price of gold.
