Sovereign Gold Bond Scheme issues gold denominated bonds with fixed interest, demat option, and annual investment limits. The Sovereign Gold Bond Scheme 2021-22 issues government stock in one gram denominations (min one gram) to specified resident Indian entities with annual ceilings (4 kg individuals/HUF, 20 kg trusts). Nominal value is based on the three day average gold price; online digital payments attract a Rs.50 per gram discount. Bonds are convertible to demat, carry fixed interest at 2.50% per annum payable half yearly, mature in eight years with early redemption from year five, and have maturity redemption priced on the three day average gold rate. Interest is taxable; redemption capital gains are exempt for individuals.