Sovereign Gold Bond (SGB): RBI Announces Premature Redemption Opportunity for 28 SGB Series

Premature Redemption:

• SGBs have a maturity period of 8 years, but they can be redeemed after 5 years of issuance.

• The redemption schedule will run from October 1, 2025 to March 31, 2026.

• The redemption price will be calculated based on the average closing price of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) for the last 3 working days.

Who Can Invest in SGBs:

• SGBs are available for Indian residents, HUFs (Hindu Undivided Families), trusts, universities, and charitable institutions.

• They can be purchased through banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and exchanges like NSE and BSE.

SGB Pricing and Interest:

• The minimum investment in SGB is 1 gram of gold, with a maximum limit of 4 kilograms for individuals and HUFs. For trusts and similar entities, the limit is 20 kilograms.

• Annual Interest: SGBs offer an annual 2.5% interest on the invested amount, which is taxable according to the investor’s income tax slab.

Redemption Process:

• The redemption value is determined based on the closing price of gold over the last 3 working days.

• Investors can redeem their bonds before maturity if they wish, but the dates may change due to unforeseen holidays.

No New Issuances:

• The government has not issued any new series of SGBs since February 2024, nor has there been any official announcement about discontinuing the scheme.

• SGBs were first launched by the government in 2015.