Investors who hold Sovereign Gold Bonds (SGBs) issued between 2019 and 2021 have an opportunity to apply for premature redemption in June 2026. The Reserve Bank of India (RBI) has announced that redemption windows will be open for five specific bond tranches during that month.
How to Apply for Premature Redemption
Investors planning to exit their SGB investment before the eight-year maturity period must submit their redemption requests within the specified timelines. Applications can be made through banks, post offices, NSDL, CDSL, or the RBI Retail Direct platform. It is crucial to adhere to the submission window, as missing it may result in the rejection of the redemption request.
Understanding Sovereign Gold Bonds
Sovereign Gold Bonds are government-backed securities denominated in grams of gold. They offer investors exposure to gold prices along with a fixed annual interest payment. These bonds serve as an alternative to holding physical gold, with the issue price paid in cash and redemption made in cash based on prevailing gold prices at maturity or upon premature redemption.
Premature Redemption Schedule for June 2026
The following table outlines the key dates for the five tranches eligible for premature redemption in June 2026:
- 2021-22 Series II: Issued June 1, 2021; Premature Redemption Date: June 1, 2026; Submission Window: April 30, 2026 – May 22, 2026
- 2021-22 Series III: Issued June 8, 2021; Premature Redemption Date: June 8, 2026; Submission Window: May 8, 2026 – May 29, 2026
- 2019-20 Series VII: Issued December 10, 2019; Premature Redemption Date: June 10, 2026; Submission Window: May 8, 2026 – June 1, 2026
- 2019-20 Series I: Issued June 11, 2019; Premature Redemption Date: June 11, 2026; Submission Window: May 11, 2026 – June 1, 2026
- 2020-21 Series III: Issued June 16, 2020; Premature Redemption Date: June 16, 2026; Submission Window: May 16, 2026 – June 6, 2026
Investors should note that these dates may change in case of unscheduled holidays.
Eligible SGB Tranches in FY27
A total of 33 Sovereign Gold Bond tranches issued between 2018-19 and 2021-22 will become eligible for premature redemption during the financial year 2026-27, according to reports.
Redemption Price Calculation
The redemption value is based on the simple average closing price of 999-purity gold as published by the India Bullion and Jewellers Association (IBJA) for the three preceding working days, in line with RBI rules.
Interest Earnings
SGBs carry a fixed interest rate of 2.5% per annum on the initial investment amount. The interest is credited semi-annually to the investor's bank account, with the final interest payment made along with the principal at maturity or redemption.
