Sovereign Gold Bonds: RBI releases premature redemption dates; check schedule and eligibility

The Reserve Bank of India (RBI) recently announced the premature redemption dates for Sovereign Gold Bonds (SGBs) maturing between April 2025 and September 2025.

As per RBI guidelines, premature redemption of SGBs is permitted after five years from the date of issue. Investors can submit redemption requests within a specified window before the due date.

The RBI has released a schedule detailing the tranches eligible for redemption, including those issued from October 2017 to September 2020. The first tranche eligible for premature redemption is the 2017-18 Series III, issued on October 16, 2017, with redemption due on April 16, 2025.

The last tranche in this schedule, the 2020-21 Series VI, was issued on September 8, 2020, and will be available for redemption on September 8, 2025.

The redemption price will be based on the simple average of closing gold prices of 999 purity published by the India Bullion and Jewellers Association (IBJA) for the three working days preceding the redemption date.

SGBs, introduced as an alternative to physical gold, offer a fixed interest rate of 2.5% per annum, payable semi-annually, and have an eight-year maturity period. Investors can opt for premature redemption after five years.

In the wake of rising gold prices, the government has decided to discontinue the SGB scheme, citing the high cost of borrowing. Finance Minister Nirmala Sitharaman announced the decision at a press conference after her Union Budget speech on February 1, 2025.