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Gold

What is SGB (Sovereign Gold Bond)? — Meaning, Definition & Example

Definition

Sovereign Gold Bonds are government securities denominated in grams of gold, issued by RBI on behalf of the Government of India. They offer 2.5% annual interest plus gold price appreciation. SGBs have 8-year tenure with exit option after 5 years. LTCG on maturity is fully tax-exempt.

💡 Real Example

If you buy 10 grams SGB at ₹6,000/gram (₹60,000) and gold price rises to ₹8,000/gram at maturity, you get ₹80,000 + ₹12,000 (2.5% annual interest × 8 years) = ₹92,000 tax-free.

🇮🇳 SGB (Sovereign Gold Bond) in Hindi / हिंदी में

SGB (सॉवरेन गोल्ड बॉन्ड) — SGB सोने के ग्राम में मूल्यवर्गित सरकारी प्रतिभूतियां हैं, जो RBI द्वारा जारी की जाती हैं। 2.5% वार्षिक ब्याज और सोने की कीमत में वृद्धि दोनों मिलती है। मैच्योरिटी पर LTCG टैक्स-फ्री है।

SGB (Sovereign Gold Bond) (Hinglish) — SGB government securities hain jo gold ke grams mein denominated hain, RBI dwara issue hoti hain. 2.5% annual interest milta hai plus gold price appreciation. Maturity pe LTCG tax-free hai.

❓ Frequently Asked Questions

What is SGB (Sovereign Gold Bond) in simple words?
Sovereign Gold Bonds are government securities denominated in grams of gold, issued by RBI on behalf of the Government of India. They offer 2.5% annual interest plus gold price appreciation. SGBs have 8-year tenure with exit option after 5 years. LTCG on maturity is fully tax-exempt.
Can you give an example of SGB (Sovereign Gold Bond)?
If you buy 10 grams SGB at ₹6,000/gram (₹60,000) and gold price rises to ₹8,000/gram at maturity, you get ₹80,000 + ₹12,000 (2.5% annual interest × 8 years) = ₹92,000 tax-free.
What is SGB (Sovereign Gold Bond) meaning in Hindi?
In Hindi, SGB (Sovereign Gold Bond) is called SGB (सॉवरेन गोल्ड बॉन्ड). SGB सोने के ग्राम में मूल्यवर्गित सरकारी प्रतिभूतियां हैं, जो RBI द्वारा जारी की जाती हैं। 2.5% वार्षिक ब्याज और सोने की कीमत में वृद्धि दोनों मिलती है। मैच्योरिटी पर LTCG टैक्स-फ्री है।