Important Update for SGB Investors: Know The Limits Before You Buy2 min read
If you’ve been investing in Sovereign Gold Bonds (SGBs), there’s an important update from the Reserve Bank of India (RBI) you should be aware of. As per the latest circular issued by CDSL (Central Depository Services India Limited), new guidelines are in place to ensure investors don’t exceed the allowed holding limits in SGBs.
Let’s break it down for you in simple terms.
What Are Sovereign Gold Bonds (SGBs)?
SGBs are government-backed securities denominated in grams of gold. Instead of buying physical gold, you invest in these bonds and earn a fixed annual interest while also benefiting from the price movement of gold.
What Are the New Limits on SGB Holdings?
RBI has prescribed maximum limits on how much SGB you can hold in a financial year (April to March) — across both primary issuance (new SGB releases) and secondary market purchases (buying from the exchange).
Here’s what you need to know:
| Investor Type | Maximum Holding per Financial Year |
| Individuals | 4 kg |
| HUF (Hindu Undivided Family) | 4 kg |
| Trusts & Other Notified Entities | 20 kg |
📝 Note: If you are investing jointly with someone, the limit applies to only the first applicant.
🛒 What Counts Towards This Limit?
✔️ Included:
- All SGBs purchased directly during government issuances
- SGBs bought from the secondary market (e.g. via Paytm Money)
❌ Not Included:
- SGBs kept as collateral with banks or financial institutions
What If Your Residential Status Changes?
If you’ve bought SGBs as a resident individual and later become a non-resident, don’t worry — you can continue to hold your SGBs until:
- You choose to redeem them early
- They reach maturity
No need to sell or transfer your holdings due to a change in residency.
Why This Matters to You?
Exceeding the limit could lead to non-compliance with RBI regulations, and the responsibility lies with the investor (you!). That’s why it’s important to:
- Track your total SGB investments (primary + secondary)
- Stay within the prescribed limits
Paytm Money makes it easy to view your SGB holdings, so you’re always aware of your current position.
What You Should Do?
✅ Check how much SGB you’ve already bought this year
✅ Keep your combined purchases (from all platforms) within the RBI limit
✅ Reach out to our support team if you need help tracking or understanding your holdings
Have Questions?
We’re here to help. If you have any doubts regarding your SGB investments, feel free to get in touch with our customer support through the Paytm Money app.
Source: https://www.cdslindia.com/common/DownLoadFile.aspx?eventid=DP2025-462&action=communique
