Synopsis

Sovereign Gold Bond (SGB): In a recent announcement, the Reserve Bank of India disclosed the premature redemption dates for Sovereign Gold Bonds, spanning from October 2026 to March 2027. Investors should be aware of the allocated timeframes for submitting their redemption applications.

The Reserve Bank of India (RBI) has released Sovereign Gold Bond (SGB) premature redemption dates for October 2026 – March 2027. For SGB investors, the RBI has provided the details of tranches due for premature redemption during the period October 2026 – March 2027 as well as the window available for the submission of request for such redemptions.



The RBI data covers 32 SGB tranches issued between June 2019 and March 2022, with their premature redemption dates falling from October 2026 to March 2027.



As per the RBI schedule, four Sovereign Gold Bond (SGB) tranches have premature redemption dates in October 2026:

What are Sovereign Gold Bonds (SGBs)?

Sovereign Gold Bonds (SGBs) are government-backed securities denominated in grams of gold and are considered an alternative to holding physical gold. Apart from capital appreciation linked to gold prices, investors also earn a fixed annual interest on their investments. However, the government has stopped issuing fresh SGBs.



Earlier issued SGBs remain active and valid until their maturity or until you opt for premature redemption.

SGB premature redemption

Premature SGB redemption is available five years from the date of the issuance of gold bonds.

How is the SGB redemption price determined?

The SGB redemption price is calculated based on the average closing price of gold (999 purity) over the last three business days before the redemption date, as published by the India Bullion and Jewellers Association (IBJA).



How to check SGB interest payment or maturity schedule



SGB interest is paid every six months at 2.50% per annum (p.a.) from the date of issue, into the bank account linked to your bonds. On maturity (after eight years), the principal is credited to the same account. Interest dates are mentioned in the certificate.

Maximum investment limit in SGB

The maximum limit of subscribed shall be 4 kg for individuals, 4 kg for a Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities per fiscal year (April-March) notified by the central government from time to time.

Can a minor invest in SGB?

Yes. The application on behalf of the minor has to be made by their guardian.

Can one trade gold bonds?

Gold bonds are tradable on stock exchanges from the date to be notified by the RBI. The bonds can also be sold and transferred as per provisions of the Government Securities Act. However, the client would have to approach their broker for trading related requirements.

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