The second tranche of the sovereign gold bond scheme launched by the Indian government has attracted subscriptions worth Rs 726 crore for 2,790 kilograms by banks, as per reports. This scheme was active from January 18-22 during which 3.16 lakh applications were received.

According to reports, the government cites this to be encouraging and a better performance over the first tranche where subscription amounted to 915.95 kg of gold worth Rs.246 crore. The government cites that the awareness and interest for the sovereign gold bond scheme is picking up.

Bonds for this second tranche will be on February 8. These bonds are issued in denominations of 5 grams, 10 gram, 50 gram and 100 gram with an annual ceiling of 500 gram per person, as per reports. The tenure of the bonds is between 5-7 years and the rate of interest is calculated based on the metal value at the time of investment, as per reports.