RBI announces Sovereign Gold Bond (SGB) premature redemption dates

Sovereign Gold Bond: The Reserve Bank of India (RBI) has unveiled a schedule for the premature redemption of Sovereign Gold Bonds (SGBs), providing investors with an option to redeem these bonds before their eight-year maturity period. This announcement covers the period from October 1, 2023, to March 31, 2024. 

It's important to note that these dates may be subject to change in the event of unscheduled holidays, and investors are advised to be mindful of the submission period for redemption requests, as stated by the central bank in a press release.

Premature redemption details

• For the SGB 2017-18 Series III, issued on October 16, 2017, investors can initiate premature redemption requests from September 16, 2023, to October 6, 2023.
• For the SGB 2017-18 Series IV, issued on October 23, 2017, the premature redemption request window is open from September 23, 2023, to October 13, 2023.
• For the SGB 2017-18 Series V, issued on October 30, 2017, investors can submit premature redemption requests between September 30, 2023, and October 20, 2023.

Sovereign Gold Bonds (SGBs)

Sovereign Gold Bonds (SGBs) serve as an excellent alternative to investing in physical gold. These bonds offer the potential for capital appreciation while providing annual interest earnings. The minimum investment in an SGB is one gram, with individuals having a maximum annual limit of 4 kg. Eligible investors encompass individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions.

Interest on Sovereign Gold Bonds is set at 2.50 per cent of the issue price and is credited to the investor's bank account every six months. It's important to note that the interest received on Sovereign Gold Bonds is fully taxable. However, profits accrued upon the redemption of these bonds are entirely tax-free, whether redeemed at the end of the original eight-year tenure or through early redemption, which is permitted after five years. Mumbai-based tax and investment expert Balwant Jain has confirmed this favourable taxation rule for profits made during SGB redemption.