As per a statement from the Finance Ministry, for investors using the digit mode for subscription, the issue price of gold bond will be Rs 5,054 per gram of gold…reports Asian Lite News
The government will give a discount of Rs 50 per gram under its gold bond scheme to investors who apply online and the payment is made through digital mode.
As per a statement from the Finance Ministry, for investors using the digit mode for subscription, the issue price of gold bond will be Rs 5,054 per gram of gold.
Otherwise, issue price of the bond during the subscription period will be Rs 5,104 per gram.
In terms of an October 9, 2020, notification, Sovereign Gold Bonds 2020-21 (Series X) will open for the period January 11-15, 2021 with Settlement date January 19, 2021.
Meanwhile, Department of Revenue (DoR) has clarified that any purchase of gold, silver, jewellery or precious gems and stones below Rs 2 lakh does not require PAN or Aadhaar of a customer as a mandatory KYC document.
Sources said that the notification issued under (Prevention of Money Laundering) PML Act, 2002, on December 28, 2020 is a requirement of FATF Dealers in Precious Metals and Precious Stones (DPMS) to carry out KYC and Customer Due Diligence only when they conduct cash transactions above Rs 10 lakh.
This is a requirement of FATF (Financial Action Task Force) – the global money laundering and terrorist financing overseer which as the inter-governmental body sets international standards aimed to prevent illegal activities on terror funding and money laundering.
One of the recommendations requires DPMS sector to fulfil obligations of Customer Due Diligence (CDD) when they conduct cash transactions above a certain limit (USD/EUR 15,000).
India is a member of FATF since 2010.
DoR sources said the contention that any purchase, even if below Rs 2 lakh, of gold, silver, jewellery or precious gems and stones in cash require KYC are baseless.
Sources said that since in India, cash transactions above Rs 2 lakh is not allowed under section 269ST of Income-tax Act, 1961, dealers not receiving cash more than Rs 2 lakh in compliance with the existing provisions of the Income-tax Act will not be covered under this notification.
