SGB premature redemption: The Reserve Bank of India (RBI) has listed the dates for premature redemption of Sovereign Gold Bonds (SGBs), covering the period from April to September 2025. This announcement, made on February 21, 2025, aims to assist investors intending to redeem their SGBs earlier than the full term.
As per the Consolidated Procedural Guidelines on the SGB scheme, bonds can be redeemed prematurely after five years from issuance. The circular provides specific details on tranches eligible for redemption and the submission window for requests. The scheduled redemption dates vary across different series of bonds. For example, the 2017-18 Series III is due for premature redemption on 16 April 2025, while the 2020-21 Series II is set for 19 May 2025.
The latest circular specified that information on tranches eligible for early redemption between April 1, 2025, and September 30, 2025, as well as the timeframe for investors to submit requests for early redemption, is outlined below.
No. Tranche Issue Date Premature redemption date
1 2017-18 Series III October 16, 2017 April 16, 2025
2 2017-18 Series IV October 23, 2017 April 23, 2025
3 2017-18 Series V October 30, 2017 April 30, 2025
4 2017-18 Series VI November 6, 2017 May 6, 2025
5 2017-18 Series VII November 13, 2017 May 13, 2025
6 2017-18 Series VIII November 20, 2017 May 20, 2025
7 2017-18 Series IX November 27, 2017 May 27, 2025
8 2017-18 Series X December 4, 2017 June 4, 2025
9 2017-18 Series XI December 11, 2017 June 11, 2025
10 2017-18 Series XII December 18, 2017 June 18, 2025
11 2017-18 Series XIII December 26, 2017 June 26, 2025
12 2017-18 Series XIV January 1, 2018 July 1, 2025
13 2018-19 Series I May 4, 2018 May 3, 2025
14 2018-19 Series II October 23, 2018 April 23, 2025
15 2018-19 Series III November 13, 2018 May 13, 2025
16 2018-19 Series IV January 1, 2019 July 1, 2025
17 2018-19 Series V January 22, 2019 July 22, 2025
18 2018-19 Series VI February 12, 2019 August 12, 2025
19 2019-20 Series I June 11, 2019 June 11, 2025
20 2019-20 Series II July 16, 2019 July 16, 2025
21 2019-20 Series III August 14, 2019 August 14, 2025
22 2019-20 Series IV September 17, 2019 September 17, 2025
23 2019-20 Series V October 15, 2019 April 15, 2025
24 2019-20 Series VI October 30, 2019 April 30, 2025
25 2019-20 Series VII December 10, 2019 June 10, 2025
26 2019-20 Series VIII January 21, 2020 July 21, 2025
27 2019-20 Series IX February 11, 2020 August 11, 2025
28 2019-20 Series X March 11, 2020 September 11, 2025
29 2020-21 Series I April 28, 2020 April 28, 2025
30 2020-21, Series II May 19, 2020 May 19, 2025
31 2020-21, Series III June 16, 2020 June 16, 2025
32 2020-21, Series IV July 14, 2025 July 14, 2025
33 2020-21, Series V August 11, 2020 August 11, 2025
34 2020-21, Series VI September 8, 2020 September 8, 2025
Source: RBI website
It is crucial for investors to keep note of these dates and submit their redemption requests accordingly. However, these dates are subject to change in the event of any unscheduled public holidays. Investors should remain vigilant and adhere to the specified submission periods to ensure their requests are processed in a timely manner.
What is Sovereign Gold Bond (SGB)?
Sovereign Gold Bonds (SGBs), issued by the RBI on behalf of the Government of India, are government securities denominated in grams of gold. These bonds offer a fixed interest rate of 2.5% per annum, disbursed semi-annually, and have an eight-year maturity term. However, investors can opt for premature redemption after five years. The redemption price is calculated based on the average gold price over the preceding three working days, making SGBs a secure investment tracking the export-import value of gold.
The RBI has set a minimum investment threshold of one gram of gold, with maximum limits set at 4 kilograms for individuals and Hindu Undivided Families (HUF), and 20 kilograms for trusts and similar entities, per fiscal year. This cap includes bonds acquired during initial government issuances and through secondary market purchases. The RBI has not introduced any new SGBs for the 2024-25 financial year, leading some experts to speculate that the programme might have concluded.
SGBs have a fixed interest rate of 2.5% per annum, paid semi-annually. These bonds mature after eight years, with the option for premature redemption after five years.
While the future of the SGB programme remains uncertain, its current stature as a viable and secure investment option remains. The bonds offer not only the potential for capital appreciation but also an assured interest income, making them an attractive alternative to physical gold holdings. With the cessation of new issuances, current holders contemplating early redemption have this window to make informed decisions based on their financial goals and market conditions.