The Reserve Bank of India (RBI) has announced the schedule for premature redemption of 28 Sovereign Gold Bond (SGB) tranches issued between May 2018 and March 2021.
Investors holding these bonds can now choose to redeem them early, between October 2025 and March 2026, as per the RBI’s released timeline.
The RBI has also clarified that these redemption dates may change if there are any unscheduled holidays during the period.
What Are Sovereign Gold Bonds (SGBs)?
SGBs are government-backed securities issued by the RBI on behalf of the Indian government.
These bonds are a safe and tax-efficient way to invest in gold without having to physically buy it. They are available for purchase by:
Resident individuals
Hindu Undivided Families (HUFs)
Trusts
Charitable institutions
Universities
You can buy SGBs through banks, the Stock Holding Corporation of India (SHCIL), designated post offices, and stock exchanges like NSE and BSE.
Maturity and Early Redemption
SGBs have a maturity period of 8 years, but they can be redeemed early after 5 years from the date of issue.
The RBI has now allowed early redemption of 28 SGB tranches between October 1, 2025, and March 31, 2026.
Investors who wish to exit before full maturity can submit their redemption requests during this period, following the RBI’s schedule.
Important Notes
These premature redemption dates are subject to change in case of public holidays or unforeseen circumstances.
The last SGB issuance was in February 2024, and the government hasn’t yet released any new installment or officially ended the scheme.
The SGB scheme was originally launched in 2015.
How Is the Redemption Price Calculated?
The redemption value of Sovereign Gold Bonds is based on the simple average of the closing price of gold (999 purity) for the last 3 working days, as published by the India Bullion and Jewellers Association (IBJA).
Investment Limits and Interest
The minimum investment is 1 gram of gold.
Individuals and HUFs can invest up to 4 kg of gold bonds in a financial year.
Trusts and institutions can invest up to 20 kg.
SGBs can be held jointly or even in the name of a minor.
Each bond earns a fixed interest of 2.5% per year, which is paid semi-annually. However, this interest is taxable under the Income Tax Act, 1961.
It falls under “income from other sources” and is taxed according to the investor’s income tax slab.
