Discontinuation of Sovereign Gold Bonds (SGBs) Under Consideration

With an increased emphasis on reducing government debt, the finance ministry is considering discontinuing the issuance of Sovereign Gold Bonds (SGBs) from the next financial year (2025-26).

Key Highlights:

• The maturity return has to be made to the SGB investor in value of gold to his account, thus increasing the liability and fiscal burden on the government.
• As from FY27, the government shall work on reduction of the physical gold imports to reduce the debt to Gross Domestic Product ratio.
• More details on the debt-reduction measures will be announced by Finance Minister Nirmala Sitharaman during the FY26 Budget presentation.

Sovereign Gold Bonds (SGB)

• SBG was inaugurated by the government of India on 30th October, 2015.
• A government security that is rated in grams measured by the amount of gold purchased by investors.
• Available by the Reserve Bank of India, on behalf of the Government of India.
• Investable for Individuals, HUFs, Trusts, Universities, and Charitable Institutions.
• Investment limits: Rs.1 gram of gold is the minimum investment to Rs.20 kg in one financial year.
• Tenures: The duration of the bond is considered 8 years with exit options made available in the 5th, 6th, or 7th years.

Read more about SGB