As per the Gold Bond Scheme of RBI, what is the assured interest rate on the gold bonds ?

Solution

"SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank of India (RBI) on behalf of Government of India. The government of India had launched the first SGB Scheme in November 2015 to provide an alternate option when it comes to owning gold. The tenor of the Bond will be for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates. The Bonds bear interest at the rate of 2.50% (fixed rate) per annum on the amount of initial investment. Interest will be credited semi-annually to the bank account of the investor and the last interest will be payable on maturity along with the principal.