I am an NRI. Can I buy sovereign gold bonds in India?
No, as far as I know, NRIs cannot invest in new Sovereign Gold Bonds as per the RBI and Foreign Exchange Management Act, 1999 guidelines. These bonds are only for resident Indians, HUFs, trusts, universities and charitable institutions.
So, once you become an NRI, you cannot buy new SGBs.
- But if you invest in SGBs before moving abroad, you can continue to hold them. You can keep them for the full 8-year tenure or choose early redemption after 5 years.
The best part is, you will still earn 2.5% annual interest. Your bank credits this amount to your Indian account.
The only catch? The interest and maturity amount cannot be repatriated outside India. You also need to update your KYC, inform your bank about the status change and link your bonds to your NRO or NRE account.
- Now, if you inherit SGBs as a nominee, you can hold them under the same rules.
So, while you cannot buy new SGBs as an NRI, your existing investments stay valid, protected and interest-bearing.